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.
Donatella Versace will receive the International Award at the 2018 @cfda awards, which were announced tonight. Tap link in bio for a list of all the nominees and honorees. #wwdnews #wwdfashion (📷: @rahirezvanistudio )
The 2018 @cfda Awards nominees are out! @virgilabloh for @off____white for is nominated for Womenswear Designer of the Year. Tap link in bio for all the nominees. #wwdnews #wwdfashion ( 📷: @simonelezzi)
@chanelofficial is suing high-end vintage retailer @whatgoesaroundnyc for trademark infringement, a move that could cost the retailer millions. The French fashion house claims that it’s not only unintentionally sold counterfeit goods on occasion, but that it’s “gone out of its way to create an association with Chanel,” which does not exist. Read Chanel’s statement on WWD.com #wwdnews (@aitorrosasphoto)
Exclusive: Guillaume Henry has left @ninaricci, the fashion house said on Thursday. “After three years of mutually gratifying creative collaboration, Nina Ricci and Guillaume Henry have together decided that the designer will depart the house after the presentation of the fall-winter 2018-19 collection,” Ricci said in a statement. Get all the details on WWD.com #wwdfashion (📷: @aitorrosasphoto)
“When Bella enters a room all heads turn,” said @peterphilipsmakeup, creative and image director for @diormakeup. Last night, the two celebrated the product launch of Dior’s Lacquer Plump in Los Angeles with other celebs like @parisjackson, @winnieharlow and more. Head to WWD.com to see the rest of the photos from the night (📷: @chelsealaurenla) #wwdeye
“These shirts are an art form, it’s about getting the message out to as many people as you can. It breaks down the pretentiousness of the art gallery,” says Kumasi Sadiki, cofounder of @ebayontheblock, a store that sells merchandise by New York artists who are shifting their attention to clothes as a wearable medium. Pictured here is a design by artist @joegarvey_, one of the first to spearhead this movement. Head to WWD.com to read @mistywhitesidell full story on how their designs have become merch for the underground elite #wwdfashion
@netaporter is dedicating a part of its website – called the Fine Jewelry and Watch Destination – to highlight its high-end jewelry. The hub will feature products on the site, as well as incorporate styling advice and educational content about high-priced jewelry items. Get more details on WWD.com. #wwdaccessories
For “The Cher Show,” an upcoming musical based on @cher’s life and career, @bobmackie is once again collaborating with the singer in designing the costumes. For decades, Mackie has designed glitzy stage costumes and red carpet looks for the 71-year-old Grammy winner. Pictured here is a sketch of some of the pieces in the wardrobe of the musical, which is set to debut in Chicago on June 12 before making its way to Broadway #wwdeye