Unexpectedly strong third-quarter profits and sales at Macy’s Inc. helped lift U.S. retail stocks to an all-time high today.
The S&P Retailing Industry Group gained 1.9 percent to end the day at 913.65, its highest level ever, and Macy’s led the sector with a 9.4 percent gain to $50.68. Macy’s established a new record of $50.95 earlier in the day after reporting after its net income soared 22.1 percent and sales advanced 3.3 percent, both well ahead of analysts’ consensus estimates.
Both the Dow Jones Industrial Average and S&P 500 closed at all-time highs, albeit with smaller increases than retail stocks. The Dow picked up 0.5 percent to 15,821.63 while the S&P 500 rose 0.8 percent to 1,782.
Leading off the third-quarter retail reporting season, Macy’s strong quarter elevated other department store issues. Dillard’s Inc., which reports its results Thursday, saw its shares pick up 6.6 percent to $89.55 while The Bon-Ton Stores Inc.’s shares were up 5.8 percent to $12.56. Guess Inc. enjoyed a 4.8 percent pickup to $33.79.
Only eight of the U.S.-based fashion, retail and beauty stocks tracked by WWD fell for the day, with the biggest decline coming from Perry Ellis International Inc., shares of which dropped 23 percent to $15 after the firm cut its full-year guidance sharply. The company said it expected a loss in the third quarter based on softness among mid-tier retailers and in its own stores.
European stock markets closed on a down note, with the FTSE 100 in London and the FTSE MIB in Milan notching the biggest losses.
The British and Italian markets both fell 1.4 percent, to 6,630 and 18,733.02, respectively, while the CAC 40 in Paris was down 0.6 percent to 4,239.94 and the DAX in Frankfurt dipped 0.2 percent to 9,054.83.
The euro traded at $1.34 while the pound fetched $1.59 and the Swiss franc went for $1.09. Retail and luxury stocks put on a poor show, with a few exceptions. Hugo Boss was up 1 percent to 97.58 euros and Aeffe advanced 4.2 percent to 0.67 euros.
Among the stocks that lost the most ground were Ferragamo, down 3 percent to 24.39 euros; Safilo Group, 2.7 percent to 14.04 euros; Mulberry Group, 2 percent to 10.30 pounds, and Compagnie Financière Richemont, 2.3 percent to 89.10 Swiss francs.
@pantone announced their Color of the Year 2018: Ultra Violet. Nearly 20 months after the musician Prince’s death, fashion is having a purple moment. Varying shades of purple appeared on spring or fall runways, from @christopherkane to @calvinklein. @gucci’s Alessandro Michele bathed his fall runway in ultra violet-colored light at one point. Pantone 18-3838 is meant to “push the boundaries of what inspires us to look upward and outward to the future.” #wwdnews #wwdfashion (📷: @kukukuba)
@badgalriri’s @fentybeauty launch in September was a massive success on social media, powering $72.9 million of earned media value, according to Tribe Dynamics. The brand’s foundation offering sparked conversations about diversity in beauty, launching the growth of emerging influencers and propelling the brand’s support on social media. Today, #fentybeauty won Launch of the Year at the WWD #BeautyIncAwards. (📷: Chema Moya/EPE-EFE)
@marianna_hewitt has become one of the most influential content creators in the beauty space, with almost 800,000 Instagram followers and a newly launched skin care line called @SummerFridays. Today, she was awarded Influencer of the Year at the WWD #BeautyIncAwards. (📸: @sophiachabbott )
As shopping behaviors evolve, the retail experience must follow. Head over to retail experts @colliersinternational’s Knowledge Leader series to read more about the shift in our shopping era. #colliersretail #lovecolliers
@prada opened a pop-up club, called Prada Double Club, in collaboration with German artist Cartsen Höller at @artbasel Miami. Last night, guests – including @youngparis, @ritaora and even Miuccia Prada herself – gathered in a former ice factory where the pop-up is housed for a performance from @wyclefjean. Go to WWD.com for full coverage on all the exhibits, parties and more at #ArtBaselMiami. #wwdeye (📷: @lexieblacklock)
@louboutinworld and @disney are making magic once again, creating a set of shoe designs for the release of “Star Wars: The Last Jedi.” Louboutin designed a pair of shoes for each of the film’s four female leads: Rey (@daisyridrey), Vice Admiral Amilyn Holdo (@lauradern), Captain Phasma (Gwendoline Christie) and Rose Tico (@kellymarietran). The shoes will debut on Saturday at the L.A. premiere of the latest episode. #wwdfashion
Today at the #BeautyIncAwards 2017, WWD will be joined by beauty leaders from around the world as we honor this year's most innovative people, products, brands and places. Follow along here and on Twitter for live coverage from the exclusive event. #wwdsummits (📷: @elizaflorendo)
Exclusive: Beauty superinfluencer @marianna_hewitt is launching her first-ever skin care brand with her business partner @laurengores. Their new line Summer Fridays, which will be sold exclusively at summerfridays.com starting in January, is launching with just one product – a hydrating cream Jet Lag Mask. “We wanted to focus on one product that was amazing,” said Hewitt. Read the full interview on WWD.com. Link in bio. #wwdbeauty #wwdnews
Michelin star-rated chef PJ Calapa marks his first solo endeavor with today’s opening of @scampinyc –– the new Southern Italian restaurant located in Manhattans’ Flatiron District. The upscale yet welcoming environment matches the menu, which includes two types of scampi: traditional Italian langoustines in butter and the Americanized version with shrimp over pasta 🍤 - pictured here. #wwdeye (📷: George Chinsee)