Better-than-expected retail sales in July jolted investors today, who pushed the S&P Retail Index up 0.9 percent, or 5.46 points, to 627.66.
The sector outperformed the Dow Jones Industrial Average, which inched up just 2.71 points to 13,172.14. Michael Kors Holdings shot up 16.5 percent to $49.33, and Estée Lauder Cos. Inc. rose 9.3 percent to $60.13. Both companies reported stronger quarterly earnings.
Also on the rise were Saks Inc., up 6.2 percent to $11.52; Christopher & Banks Corp., 5.6 percent to $2.46, and The Buckle Inc., 3.7 percent to $39.91.
“It is apparent that after a cautious second quarter, shoppers decided to head to the mall and open their wallets despite rising gasoline prices,” said Chris Christopher, IHS Global Insight’s U.S. Economist. “In addition, the heat wave that started at the end of June and continued into July may have assisted clothing, sporting goods, and building material outlet sales.”
Still, Christopher warned that spending patterns were fragile and that, “Robust and enduring consumer spending growth will happen once job prospects improve and consumer confidence jumps out of recession territory.”
Europeans, however, are weathering more acute economic pains.
The region’s official statistics agency said the euro zone’s second-quarter GDP fell 0.2 percent versus the prior year and slipped 0.4 percent from a year earlier.
More encouragingly, Germany, which has been Europe’s economic engine lately, saw its GDP grow by 0.3 percent versus the first quarter and 1 percent versus a year ago.
Frankfurt’s DAX gained 0.9 percent to 6,974.39 as Milan’s FTSE MIB rose 0.9 percent to 14,656.87, Paris’ CAC 40 increased 0.7 percent to 3,450.27 and London’s FTSE 100 rose 0.6 percent to 5,864.78.
Among the gainers were Marks and Spencer Group, 1.7 percent to 3.56 pounds; Salvatore Ferragamo Italia, 1.1 percent to 17.38 euros; Burberry Group, 1.1 percent to 13.62 pounds, and Luxottica Group, 0.6 percent to 28.88 euros.
The euro traded at $1.23 and the pound went for $1.57.
EXCLUSIVE: @tomford is opening its first-ever beauty store. The boutique, which opens November 20 in London’s Covent Gardens, was designed with the over-the-top glam Ford is known for. Read the full story on WWD.com, link in bio. #wwdbeauty #wwdnews (📷: Simon Wagner) #TomFordBeauty
New York-based DJ @harleyvnewton threw a party to celebrate the holiday collection of her dress and pajama line @hvn at the Ladurée Beverly Hills. It Girls @katebosworth, @rashidajones and more joined in on the fun, which included cocktails, croque monsieur sandwiches and a photo booth. #wwdfashion (📷: Owen Kolasinski/BFA.com)
For the holidays, @Burberry partnered with 20-year-old artist @blondeymccoy on a series of three outdoor murals in downtown Manhattan. The murals are McCoy’s interpretation of a Christmas eve party, the idea of charity and the spirit of family. His third mural, pictured here, is the most personal. The image depicts McCoy’s grandparents and father in London’s Trafalgar Square in the Seventies. “My work often features lots of sentimental objects.” #wwdeye
For spring 2018, designers applied bold colors and cartoonish motifs on everything from sneakers and belts to key chains. See all the top men’s accessories trends on WWD.com. #wwdtrends (📷: George Chinsee; Prop Styling by @rnasti; Market Editor: @luiscampuzano)
The @dior-sponsored @guggenheim international gala pre-party has a history of drawing cool-girl musical acts to serenade the crowd –– and last night was no exception. @haimtheband performed songs both new and old, and lured a star-studded audience with the likes of Rebecca Hall, Kate Mara, Mamoudou Athie and more. #wwdeye (📷: @lexieblacklock)
In a partnership between the @metopera and the @englishnationalopera, “Marnie” was born. The opera, with costumes sponsored by @mrporterlive, is an adaptation of the 1961 thriller by Winston Graham. Arianne Phillips, who created the costumes, is no rookie: She’s styled Madonna for her tours and created costumes for a myriad of films in the past. Read WWD’s interview with Phillips, where she talks about her inspiration for the opera’s costumes on WWD.com #wwdfashion
@barneysnyc took a different approach to their holiday windows this year. Instead of Christmas decor, Barneys tapped @thehaasbrothers to tell a story of positivity, gratitude and inclusivity via heartwarming silliness and humor. “It’s about kids and it’s about coming together and being family and loving each other,” said Simon Haas. #wwdfashion (📷: @joshuascottphoto)
Beauty influencer @kandeejohnson makes her foray into hair care with a collaboration with @ogx_beauty — making it the first time that OGX has teamed up for a product creation. The collab includes shampoos and conditioners in three scents. At 39 and a mom, Johnson is a different profile than the emerging social media stars, but is considered one of the pioneers of the digital beauty influencer world. Read WWD’s interview with her on wwd.com, including the strangest beauty product she’s ever tried #wwdbeauty