Retail shares returned to positive ground despite the Commerce Department’s report of sales declines in January.
The S&P 500 Retailing Industry Group recorded a 0.9 percent increase to 896.49 following news early in the day of a 0.4 percent decline in overall retail sales compared to December, with apparel and accessories stores down a seasonally adjusted 0.9 percent and department stores off 1.5 percent. An arctic climate outside and promotional one in stores kept a lid on sales throughout the month.
The retail index rose more rapidly than either the broader S&P 500, up 0.6 percent to 1,829.83, or the Dow Jones Industrial Average, up 0.4 percent to 16,027.59. It was the Dow’s first close above 16,000 since Jan. 23.
Leading the retail charge was Sears Holdings Corp., which rose 7.5 percent to $43.42 after news Force Capital Management, headed by Robert Jaffe, held a 6.3 million share, or 5.6 percent, passive stake in the firm. Barry Berkowitz’s Fairholme Capital Management, previously owners of a 17.1 percent stake, increased its stake to 22.8 percent.
Shares of Elizabeth Arden Inc. rose 6.9 percent to $28.57 and American Apparel Inc.’s shares advanced 6.1 percent to $1.01.
J.C. Penney Co. Inc. saw its shares pick up 0.5 percent to $5.99 after it said thatEdward Record, formerly of Stage Stores Inc. and Kohl’s Corp., would succeed Ken Hannah as executive vice president and chief financial officer on March 24. Analysts viewed the appointment as an indication of an endorsement of gradual change in the troubled retailer’s finances, rather than a more aggressive restructuring approach.
Shares of Oxford Industries Inc. rose 2 percent to $76.56 but declined 4 percent, to $73.37, in the early stages of after-hours trading after the Atlanta-based owner of Tommy Bahama and Lilly Pulitzer pulled down its fourth-quarter guidance based on what chief executive officer Thomas Chubb 3rd term a “weaker than expected” performance from the Ben Sherman business.
Adjusted earnings per share for the three months are now expected to range between 83 and 88 cents on revenues of about $250 million, lower than the EPS range of 98 cents to $1.13 and revenue projection of between $255 million and $265 million provided earlier.
Penney’s gain as cfo proved to be Stage Stores Inc.’s loss, with the latter’s shares off 3.4 percent to $18.81. Avon Products Inc. shares fell 3.1 percent to $14.60 after the company estimated that its settlement with the Department of Justice and the Securities and Exchange Commission could cost up to $132 million.
Most European markets rose, although the FTSE MIB in Milan, the strongest performer of the major indices in Europe so far this year, had a down day, surrendering 0.2 percent to land at 20,110.30.
The DAX in Frankfurt trended up 1.3 percent to 9,411.84, followed by the FTSE 100 in London, up 0.7 percent to 6,635.98, and the CAC 40 in Paris, ahead 0.5 percent to 4,259.70.
Asos.com shares had a good day, rising 6.2 percent to 66.69 pounds. Geox was up 3.1 percent to 3.03 euros in Milan while Mulberry Group rallied 1.7 percent to close at 6.77 pounds in London.
Among those shedding value on the day were Prada, 4.9 percent to 60.55 Hong Kong dollars. Esprit was off 1.4 percent to 14.26 Hong Kong dollars and Kering down 1 percent to 152.55 euros.The euro traded for $1.36 against the U.S. dollar while the pound brought $1.64 and the Hong Kong dollar 12.9 cents.
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye
“It’s passion that helps get anybody to a certain point and it’s what’s propelled me,” said Kith founder @ronniefieg, one of WWD’s 40 under 40: a group of industry notables who are changing the face of retail, fashion and beauty. Fieg, who opened a Manhattan flagship on October 7, began his career at age 13 as a stock boy and salesman for footwear chain David Z. “I think staying true to [my] beliefs, hard work and passion have gotten me to where [Kith] is today.” See the rest of the 40 at WWD.com. (📷: @vsteves) #wwd40
25-year-old @samweaving is about to break out this fall, starring in Netflix’s horror film “The Babysitter,” fittingly out today on Friday the 13th. That’s not the only place you’ll be seeing her, though — Weaving’s got a role Showtime’s “SMILF” and another alongside Frances McDormand and Woody Harrelson in “Three Billboards Outside Ebbing, Missouri.” Though she’s got a full plate at the moment, there’s one role she’s got her eye on: Marilyn Monroe. “I’m a little too young at the moment, but it’s on my bucket list,” the actress told WWD (📷: @dandoperalski) #wwdeye
BFF's Poppy Jamie and Suki Waterhouse celebrated the launch of their bag line Pop x Suki at Nordstrom last night. "The line is really about our friendship, and how we are so different but complement each other," said Waterhouse. 👯 (📷: Katie Jones) #wwdeye
After designing the new @louisvuitton and @bulgariofficial flagships and a @chanelofficial boutique opening in Japan, @petermarinoarchitect has another project on his plate: The Lobster Club. Located in the Seagram Building, it’s the famed architect’s first restaurant project in New York, serving up modern Japanese brasserie-style cuisine. Bronze hues, bespoke material detailing, blush and chartreuse tones and a heavy emphasis on Picasso can be seen throughout. Mark your calendars for Nov. 1 for the much-anticipated opening. (📷: @clint_spaulding) #wwdeye