NEW YORK -- Coolness, both in the temperature and consumer reactions to spring assortments, led to lackluster May sales and will hold comparable-store sales results for the month at or below plan in most cases, one analyst group forecast...
NEW YORK -- Coolness, both in the temperature and consumer reactions to spring assortments, led to lackluster May sales and will hold comparable-store sales results for the month at or below plan in most cases, one analyst group forecast Monday.Yet, even with Gap expected to land with yet another double-digit comp decrease, results generally will be better than last year.According to the overall Salomon Smith Barney monthly sales index, retail sales in May are expected to be up 2.2 percent, versus a 0.8 percent increase in May 2001. Wal-Mart and Target, benefiting from Kmart's woes and generally budget consciousness among the citizenry, are expected to again set the pace for the market.May sales historically are 30 percent of second-quarter sales and are typically driven by full-price summer apparel and the tag ends of spring clearance.In particular, the SSB retail team, on a conference call Monday previewing the monthly results, said sales during the third week of the month were generally disappointing, with Target, J.C. Penney Co. and Sears, Roebuck & Co. all posting below-plan sales results. By contrast, they said Wal-Mart and Federated were on plan, while Dollar General was a strong performer, exceeding plan in May.The analysts noted that sales results from the Memorial Day weekend showed a weekly sequential improvement. In addition, some retailers were impacted by the fact that May was a four-week month on the retail calendar, pushing some sales event into June. Most retailers will report monthly results this Thursday.On the specialty side, analyst Maura Hunter Byrne said she is expecting "some risk to sales plan, given the choppy traffic patterns and the unseasonably cool temperatures, which may have hindered sales of full-price summer apparel and probably earnings upside." According to Byrne's estimates, the SSB softline same-store sales index is projected to slip 2 to 4 percent, compared with a 5.2 percent decline last year and slightly below the pace of the first-quarter index, which was down 1.6 percent. Excluding results from Gap, which constitutes 25 percent, results could range between down 1 percent to up 1 percent."Management is keeping their fingers crossed for the month of June now that the warmer weather is here," Byrne said.By company, Gap's monthly sales are forecast to fall 12 to 14 percent, versus a 10 percent drop last year. Gap said in announcing chief executive officer Millard Drexler's retirement, on May 21, that May sales were trending better than its first-quarter 17 percent comp decline. By division, Banana Republic is expected to be down 7 to 9 percent, Gap down 16 to 18 percent and Old Navy down 9 to 11 percent.On the other hand, Limited Brands comps are expected to rise 2 to 4 percent, on the back of a 6 percent decline last year. Byrne noted that Victoria's Secret, up 4 to 6 percent, and Express, up 7 to 9 percent, should lead the way for a strong showing from the Columbus, Ohio-based retailer.Other specialty stores expected to show negative results include Abercrombie & Fitch, projected to fall 6 to 8 percent; Ann Taylor, down 3 to 5 percent, and Talbots, in line with management's estimates, down 10 to 12 percent.On the broadline side, the index is expected to improve 2.9 percent against a 1.6 percent increase last year. Again, Wal-Mart and Target are expected to fly faster than Spider Man up a skyscraper, with estimated increases ranging from 4 to 6 percent (versus 3.8 percent last year) and 1 to 3 percent (versus 9 percent), respectively. Wal-Mart's seasonable business improved throughout the month, along with the weather, though it is still behind plan.Shari Schwartzman Eberts, a broadline analyst at J.P. Morgan Securities, said she expects generally below-plan results, especially from the department stores, for May. Kohl's is expected to finish the month above plan, while Saks Fifth Avenuue and Wal-Mart should be on plan, she said."
London’s newly opened @designmuseum will look back on the life and work of Azzedine Alaïa in a show that the designer helped to curate before he died of heart failure last month. The retrospective, which Alaïa had worked on with Mark Wilson, chief curator of the @groningermuseum, will look at the impact of his work worldwide. The show, “Azzedine Alaïa: The Couturier,” will run from May 10 to October 7. Read more about the exhibit on WWD.com #wwdnews #wwdfashion (📷: @zefashioninsider)
@Pharrell and his wife Helen Lasichanh were among the stars that came out to celebrate @rimowa’s first pop-up concept shop. The space, which is located on Rodeo Drive in Beverly Hills, draws inspiration from airport luggage carousels and lounge areas – and features the company’s luggage and accessories. If the pop-up is successful it could pave the way for addition temporary shops throughout the world. #wwdfashion (📷: Owen Kolasinski/BFA)
@carineroitfeld celebrated @crfashionbook’s first calendar last night with a dinner party at Spring Place in Manhattan. Photographed by @stevenkleinstudio, the calendar takes on a fitness theme and features @joansmalls, @gigihadid, @danielle_herrington_ – pictured here – and more. “[Carine Roitfeld] wanted me to feel sexy and she wanted me to be myself and feel it out on my own and do what I felt was right,” said Herrington, aka Miss October. #wwdeye
@saintrecords and @virgilabloh last night at @americanexpress’ “A Night With Success Makers” event. “I always bring it back to community because without that I wouldn’t have the courage,” said Knowles when asked how she has gotten where she is now. Read more highlights from their conversation on WWD.com. #wwdeye (📷: @lizdoupnik)
This Just In: Industry sources have told WWD that Anastasia Soare is rumored to be considering selling her beauty business, @anastasiabeverlyhills. According to those sources, Soare has tapped investment bank Imperial Capital to explore sale options for her eponymous beauty brand –– and with at least $340 million in net sales, this would be a big deal. Put in context of other recent transactions for makeup companies, Soare’s price tag could be in the billions if she were to sell the whole thing. #wwdnews #wwdbeauty (📷: @clint_spaulding)
@assouline’s latest book, “The Spirit of Bentley: Be Extraordinary” captures the adventurous attitudes and opulent lifestyles of @bentleymotors’ most creative owners and enthusiasts throughout the U.K. The 292-page hardcover has a section dedicated to showing its team of skilled artisans and photos of its most colorful owners, from George Bamford to designer @alicetemperley, pictured here by Aline Coquelle. #wwdeye
@google released its report on the most popular search terms this year. For fashion brands, the list was led by @gucci, the luxury brand that stunned the market last October when it pledged to stop using fur. Runner ups were @supremenewyork and @fashionnova, along with more established brands like @louisvuitton, @chanelofficial and @ysl. #wwdfashion (📷: @aitorrosasphoto)
In yet another fashion show shuffle, @elleryland is moving its show in sync with the Paris couture calendar — though the brand is still keeping one foot on the city’s ready-to-wear schedule. Their runway show in January will coincide with the launch of a new strategy: designing two main collections each year instead of four, which will then be released in four drops. “As we all know, the system needs to change. We need to show sooner to give time back to artisans and designers to do what they do best — create,” said founder Kym Ellery. #wwdnews #wwdfashion (📷: @kukukuba)
@maxmara’s classic 101801 coat was the cornerstone of its pre-fall 2018 collection. The design team expanded the traditional double-breasted, kimono-sleeved style into a trapeze coat, lean belted styles and a peacoat and presented them in monochromatic looks – like the camel one pictured here. #wwdfashion #prefall18 (📷: George Chinsee)