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.
“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
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
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