Retail stocks and the broader market treaded water while strong earnings reports from Burlington Stores Inc., Christopher & Banks Corp. and Cherokee Inc. scored large gains.
The S&P 500 Retailing Industry Group fell less than 0.1 percent to 893.68, in step with the S&P 500, which contracted at the same rate to close at 1,950.79. The Dow Jones Industrial Average ended the day at 16,945.92 to eke out an increase that was also less than 0.1 percent.
Cherokee notched the largest gain among the fashion, retail and beauty stocks tracked by WWD, rising 12.1 percent to $15.55, and hitting a 52-week high of $16.91 in midday trading, after its first-quarter profits came in 18 cents higher than expected at 43 cents a diluted share on a 23.7 percent increase in royalty revenues to $10 million.
Christopher & Banks had the second largest gain of the day, up 9.6 percent to $7.29, after its Q1 earnings of 7 cents a diluted share more than tripled the consensus estimate for a 2-cent profit and gross margin improved to 36.7 percent of sales from 34.2 percent a year ago.
Burlington was up 5.3 percent to $29.67 on its performance in Q1 performance and guidance for second-quarter and full-year results above Wall Street views.
Chico’s FAS Inc. logged the third largest gain of the day, rising 7.6 percent to $16.53, after the Financial Times reported it had held talks with private equity firms interested in a stake or outright acquisition of the firm. Oxford Industries Inc. shares were up 5.4 percent to $72.47 in advance of the release of its first-quarter financial results. While those results exceeded estimates, guidance fell short of it, sending shares down slightly in after-hours trading.
Urban Outfitters Inc. had the largest decline in the WWD sample, falling 3.7 percent to $33.39, with investors apparently discouraged by its disclosure on Monday night that, in the second quarter to date, comparable sales in its retail segment were “approximately flat,” an indication that the Urban Outfitters brand was continuing to struggle.
Coach Inc. and The Bon-Ton Stores Inc. shares both contracted 3.1 percent, to $39.58 and $10.12, respectively.
The major European markets ended their trading sessions up, with the exception of the FTSE 100 in London, which was down less than 0.1 percent to 6,873.55.
However, the DAX in Frankfurt rose 0.2 percent to 10,028.80 while the CAC 40 in Paris and FTSE MIB in Milan both rose 0.1 percent to 4,595.00 and 22,502.97, respectively.
Among retail and luxury stocks, Aeffe SpA was up 10.5 percent to 1.30 euros and Asos rose 3.2 percent to 33.02 pounds.
Among only a few companies losing ground were Ted Baker, down 4.2 percent to 19.35 pounds, and Next plc, off 1.7 percent to 65.15 pounds following the announcement that group product director Christos Angelides is leaving in September to become brand president for the Abercrombie & Fitch and abercrombie kids brands of Abercrombie & Fitch Co.
The euro traded for $1.36 against the U.S. dollar and the pound for $1.68.
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)