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.
There'll be no rest for those headed to Europe for men's, as Paris just closed the gap with Milan. According to a provisional calendar released by the Chambre Syndicale, Paris Men's Week will now open a day earlier on January 16. See new highlights on the official lineup on WWD.com. #wwdnews #wwdfashion (📷: @kukukuba)
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The crisp white button down: a staple that can be dressed up or down and accessorized throughout the decades. Here, on a Art Basel-goer in 2017 on the left and on the iconic Audrey Hepburn in “Roman Holiday” in 1953 on the right. #tbt #wwdfashion (📷: Andrew Morales)
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EXCLUSIVE: Huda Kattan just became the first beauty influencer to land a major beauty deal. Kattan's business, @hudabeauty, has received a minority investment from private equity firm TSG Consumer Partners. The brand, which industry sources say is on track to do $200 million in retail sales for 2017, will receive support on product, retail and geographic expansion through the deal. Get all the details on the deal and read @_a_collins' interview with Kattan on WWD.com. Link in bio. (📷: @jgreenery) #wwdbeauty #wwdnews
Peruvian model @juanaburga_official – who is known for walking the runways of @rodarte, @viviennewestwood and @torybuch – is making the move to the big screen with drama “Los Últimos.” The film premiered in Argentina in November and arrives in the U.S. and Europe in 2018. On making the switch from modeling to acting, Burga told WWD: “It’s a completely different thing – a lot of people think it’s similar or try to connect things, especially like getting used to the camera or being looked at all the time or playing these different characrers, but film is a completely different story.” #wwdeye (📷: @jgreenery)
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