U.S. retail stocks broke a two-day losing streak today as Wall Street hunkered down in anticipation of the Federal Reserve Open Market Committee meeting next week.
The S&P 500 Retailing Industry Group gained 0.2 percent to close the week at 914.40. The Dow Jones Industrial Average added 0.1 percent to end at 15,755.36 and S&P 500 was down a fraction to 1,775.32.
Investors and economists are waiting for word on whether positive signs in the economy will lead the Fed to end or “taper” its bond-buying program, one of the few sources of public-sector stimulus.
Shares of Quiksilver Inc. scored the biggest gain among fashion, beauty and retail stocks tracked by WWD. They rose 7.1 percent to $8.28 after falling back 2.7 percent in after-hours trading Thursday on an unexpected first-quarter loss. An upgrade to “buy” from “neutral” by B. Riley, citing progress in the company’s plans to rebuild profitability and focus on core brands, lifted investor confidence.
Two California-based, youth-oriented specialty chains — Pacific Sunwear of California Inc. and The Wet Seal Inc. — were also among the day’s biggest winners, rising 3.5 percent to $3.25 and 2.9 percednt to $2.47, respectively.
The days deepest decline came from Coldwater Creek Inc. Although the third-quarter loss reported late Thursday was smaller than the one expected by analysts, plans to close up to 10 additional stores out of its current fleet of 379 gave investors pause, and shares pulled back 5.9 percent to 80 cents.
American Apparel Inc. saw its shares erode 3.7 percent to $1.05 while Sears Holdings Corp.’s shares were off 2.7 percent to $45.36.
Europe’s major indices ended the week with narrow losses.
London’s FTSE 100 crept down 0.1 percent to 6,440.56, while the DAX in Frankfurt was also down 0.1 percent, to 9,010.41. The CAC 40 in Paris lost 0.2 percent to 4,059.71 and the FTSE MIB in Milan was unchanged at 17,805.73.
The gainers included Luxottica Group, up 2.8 percent to 36.95 euros; Compagnie Financière Richemont, 1.1 percent to 85.95 Swiss francs, and Brunello Cucinelli, 2.6 percent to 25.24 euros.
Declines came from Metro, down 1.2 percent to 34.57 euros; Tod’s, 0.6 percent to 120 euros, and Carrefour, 0.6 percent to 27.13 euros.
The euro traded for $1.38 against the U.S. dollar, while the pound traded for $1.64 and the Swiss franc for $1.13.
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“It’s a hard industry to keep motivated, as well, so finding different subjects and people is what makes it worth it – when you’re like, oh, I’ve met great people, I feel like I’ve done something good, and I feel proud of having done this,” said French actress Stacy Martin on being grateful for the variety of roles she’s take on. Read @ktauer’s full interview with Martin on her her latest film “Godard Mon Amour.” #wwdeye (📷: @danieldorsa)
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EXCLUSIVE: Two and half months after John Targon, cofounder and codesigner of Baja East, was hired as creative director of the contemporary division at Marc Jacobs, he has left the company, WWD has learned. Marc Jacobs International, which is owned by LVMH Moët Hennessy Louis Vuitton, confirmed Targon’s departure in a statement: “John Targon is a talented designer and we appreciate the work he has done here. Ultimately working together did not make sense for the brand and we wish him the best.” Read the story by @jessiredale, link in bio. #wwdnews
@theluxurycollection is officially launching a collection, tapping Sofia Sanchez de Betak for the capsule. Over 30 styles will be featured in the Chufy x The Luxury Collection, debuting next month at Bergdorf Goodman, The Webster, FiveStory and more. De Betak, known as “@chufy,” drew inspiration for the collection from her trips to Japan in the past year #wwdfashion
@lhd, founder and CEO of @thewebster, has teamed up with @lebonmarcherivegauche for the European launch of her ready-to-wear line, LHD. The launch will come with an exclusive pop-up opening today that’s set to run through May 20. Located on the second floor, it carries her debut Miami-themed resort collection, launched in November as see-now-buy-now. #wwdfashion