Retail stocks fell 0.4 percent on Wall Street today, but the J.C. Penney Co. Inc. rollercoaster continued and investors pushed the stock up 8.5 percent to $8.14 after an analyst offered a slightly better take on the ailing department store’s sales outlook.
The S&P Retailing Industry Group slipped 3.75 points to 890.88 while the Dow Jones Industrial Average gained 0.5 percent, or 69.80 points, to 15,615.55.
ITG Investment Research analyst John Tomlinson projected that Penney’s third-quarter comparable-store sales would fall 4 percent — an improvement from the 6 percent drophe previously projected. The analyst also boosted his forecast for Penney’s total sales for the quarter to $2.81 billion from $2.75 billion.
“The main driver to the change in our forecast is that our most-recent data and analysis points towards much improved [year-over-year] sales growth during week 11 [of the quarter], which was a strong rebound from the weak sales trends we had observed during week 10,” Tomlinson.
Penney’s chief executive officer Myron “Mike” Ullman 3rd said the company would come out in the third quarter with a “positive comp” at the WWD CEO Summit this week.
Among the fashion companies losing ground in the market were Bebe Stores Inc., down 6.5 percent to $5.65; American Apparel Inc., 6.7 percent to $1.25; The Bon-Ton Stores Inc., 3.1 percent to $11.10; American Eagle Outfitters., 2.3 percent to $15.13, and Michael Kors Holdings Ltd., 2 percent to $75.43.
Investors continue to try to sort out when the Federal Reserve will deem the economy strong enough to grow on its own and begin to pull back on its easy money policies. Onepositive economic indicator came from the Institute for Supply Management’s manufacturing index, which beat economists’ projections and rose to 56.4 last month, from September’s 56.2. Readings above 50 indicate expansion.
Europe’s markets were predominantly down at the close.
The FTSE MIB dropped 1 percent to 19,164.26, the CAC 40 in Paris lost 0.6 percent to 4,273.19, Frankfurt’s DAX slipped 0.3 percent to 9,007.83 and London’s FTSE 100 was slightly ahead, up by 0.1 percent to 6,734.74.
The euro was trading at $1.38 against the dollar while the pound fetched $1.60.
Retail and luxury stocks put on a mixed show, which the day’s strongest gainers including Mulberry, up 4.7 percent to 10.75 pounds; Asos.com, 2.6 percent to 56.96 pounds, and Yoox.com, 0.8 percent to 26.70 euros.
Among the shares losing ground were Safilo, down 2.4 percent to 14.74 euros; Luxottica, 1.7 percent to 39.33 euros, and Inditex, 1.2 percent to 119.50 euros.
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)
BREAKING: Jonathan Saunders is leaving @DVF. The designer has resigned from his position as chief creative officer of Diane von Furstenberg, the company said in a statement on Friday. At the time of his hire, von Furstenberg said Saunders’ arrival symbolized and facilitated her stepping back from the day-to-day duties that occupy the work of a full-time creative director. The British designer joined DVF in May 2016 and was in charge of all product categories. #wwdnews
For @versace_official’s spring ad campaign, the brand emphasized the archival prints from the spring tribute collection dedicated to the late Gianni Versace. Closing out the show were five of Gianni’s favorite models: Cindy, Naomi, Carla, Helena, and Claudia. Bowing on December 18, the new campaign is yet another tribute to supermodel-dom as the images by Steven Meisel are fronted by @iamnaomicampbell, @cturlington, @gisele and more. #wwdfashion
Four-time Oscar-nominated actress Annette Bening has been waiting 20 years to play Gloria Graham in "Film Stars Don't Die in Liverpool," which will be released on December 29. The movie about Graham – a Hollywood star known for her controversial relationship with a younger Englishman named Peter Turner – is based off a memoir Turned wrote. "She felt vulnerable to him, because she loved him, she really did love him. And anyone that we really truly are in love with, we re vulnerable to in a very deep way," said Bening. Read our full interview with the modern icon of an actress on WWD.com. #wwdeye (📷: @ninebagatelles; Styled by @cristinaehrlich)
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)
Known for her work with @victoriassecret, 25-year-old model @georgiafowler is raising her profile in Hollywood. Fowler stars in @vincecamuto’s holiday campaign, which launched in partnership with “Pitch Perfect 3.” “Almost every shoot with Vince Camuto, I’ve had to face a fear…It was definitely a challenge. I’m so grateful for it, though. I’ve always wanted to be a pop star, so that was the perfect chance,” Fowler said. Head to WWD.com to read about Fowler’s experience modeling, including at the #VSFashionShow, and her relationship with Nick Jonas. #wwdeye (📷: @jilliansollazzo)
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)
London’s newly opened @designmuseum will look back on the life and work of Azzedine Alaïa in a show that the designer helped to curate before he died of heart failure last month. The retrospective, which Alaïa had worked on with Mark Wilson, chief curator of the @groningermuseum, will look at the impact of his work worldwide. The show, “Azzedine Alaïa: The Couturier,” will run from May 10 to October 7. Read more about the exhibit on WWD.com #wwdnews #wwdfashion (📷: @zefashioninsider)