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.
“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
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
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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