U.S. retail stocks suffered their third consecutive day of declines while outperforming the major indices.
The S&P 500 Retailing Industry Group was off 0.2 percent to 891.58, slightly more than the declines of 0.1 and 0.06 percent weather on Monday and Tuesday, respectively.
The retail index’s dip was also milder than the 0.6 percent decline registered by the Dow Jones Industrial Average and the 0.4 percent dip for the S&P 500. The Dow finished the trading day at 16,843.88 and the S&P at 1,943.89.
European markets also finished below Tuesday levels. The declines on both sides of the Atlantic came as the World Bank lowered its estimate for worldwide economic growth to 2.8 percent from the 3.2 percent forecast in January. Expectations for growth in U.S. were lowered to 2.1 percent from 2.8 percent and for developing countries to 4.8 percent from 5.3 percent.
In the beauty world, shares of Ulta Salon, Cosmetics & Fragrance Inc. were up 13.8 percent to $97.11 after a strong first-quarter performance that exceeded analysts’ consensus estimates was reported late Tuesday. Ulta’s strong showing helped shares of Elizabeth Arden Inc., an Ulta supplier, leapt 14.3 percent to $28.63.
Francesca’s Holdings Corp. shares advanced 3.8 percent to $14.06 while Christopher & Banks Corp. rallied 3.6 percent to $7.55. Francesca late Wednesday reported quarterly results slightly below consensus while Christopher & Banks exceeded expectations with its first-quarter report on Tuesday morning.
Among issues in decline were Destination XL Group Inc., off 5 percent to $5.28; Oxford Industries Inc., 3.9 percent to $69.66, and Lululemon Athletica Inc., 2.6 percent to $44.30. Oxford’s second-quarter guidance, issued late Tuesday, disappointed investors, while Lululemon, scheduled to report results Thursday morning, held its annual meeting, at which Michael Casey, the non-executive chairman, survived an effort to unseat him and another director from company founder and former chairman and chief executive officer Chip Wilson.
In Europe, the FTSE MIB sank the most, losing 1.2 percent to 22,223.77, followed by the CAC 40 in Paris, 0.9 percent to 4,555.11, and the DAX in Frankfurt, 0.8 percent to 9,949.81. The FTSE 100 in London pulled back 0.5 percent to 6,838.87.
Retail and luxury stocks were mostly down, with the day’s biggest declines including Yoox Group, 2.6 percent to 21.85 euros; Koovs, 1.8 percent to 1.40 pounds; Asos.com, 2.1 percent to 32.32 pounds, and French Connection, 1.3 percent to 70 pence.
Among the few stocks that gained ground were Inditex, which climbed 1.1 percent to 111.50 euros, despite a 7.3 percent decline in net profits in the three months to April 30; Aeffe, 5.4 percent to 1.37 euros; and Gemfields, 9.1 percent to 51 pence.
The euro traded at $1.36 against the U.S. dollar while the pound fetched $1.68 and the Swiss franc equaled $1.11.
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews