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.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast