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.
For its next men’s wear collection, @roberto_cavalli will show as a special guest at #PittiUomo, running from June 12-15. The brand, which has Florence in its roots, will relaunch its men’s wear collection, which will be presented separately from women’s wear for the first time since Paul Surridge was appointed creative director in May. #wwdnews #wwdfashion (📷: @aitorrosasphoto)
“I was making the guacamole when my scout saw me,” says model @stuckinteenage on being discovered just six months ago while working at @chipotlemexicangrill. Since then Williams has signed with @dnamodels, walked in her first show at @calvinklein and landed on the cover of @vogueitalia – a high point of any model’s career. To read @lisajlockwood’s full interview with the model on her experiences thus far, head to WWD.com – link in bio. (📷: George Chinsee)
“I love the idea of dialogue, period. It’s where I’ve always gotten my inspiration from: hearing other women speak, their journeys and their paths,” said @hereisgina, who delivered the keynote speech at the @sxsw conference for @createcultivate, the online platform and conference series for women. For her two panels, Rodriguez chose female empowering, female-led and female entrepreneurs to focus on. Head to WWD.com to read more about her thoughts on Time’s Up, growing up in a family of women and why we “need a girls’ club.” #wwdeye #sxsw (📷: @jgreenery)
Leading luxury brand are shaking things up to keep up with streetwear. Case in point: the arrival of @mrkimjones as artistic director of @diorhomme. Jones, who succeeds @Kris_Van_Assche, is seen as one of the handful of designers who can actually straddle the luxury and streetwear worlds — which could lead to even more changes at established brands. What could this mean for the rest of the menswear landscape? Head to WWD.com to find out what experts predict #wwdfashion (📷: @franckmura)
“It’s like buying groceries. You’re going to buy the best mango, the best mozzarella, the best things. You have to, or others are going to take it all,” said @gabrielahearst on why she uses only the finest fabrics. Last week, Hearst received her first @cfda nomination for Womenswear Designer of the Year, and earlier this month she opened a permanent showroom in Paris. To read @jessiredale’s interview with the designer and find out why this is shaping up to be a big year for her, head to WWD.com. #wwdfashion (📷: @francoisgoize)
“It’s an interesting thing, playing a younger version of your mother. It’s an interesting concept. I adore my mom and love her in every capacity, but it was just something that had never crossed my mind,” says @anniemstarke on playing a young Joan Castleman in “The Wife.” The same role will be played by her mother Glenn Close. Read more about her growing up in the film industry as the daughter of producer John H. Starke and Close and what she has planned for the future #wwdeye (📷: @nataliamantini)
@asics is launching a new streetwear sneaker inspired by its latest ambassador, @steveaoki. The Hyper-Kenzen x Aoki, which will launch at @footlocker stores exclusively tomorrow, is a slip-on style that incorporates the brand’s proprietary Gel technology through beads integrated into the midsole for comfort and endurance. Read the full story on WWD.com.