Retail shares bounced back Monday in intraday trading after the S&P Retail Index fell to its lowest point in nearly 11 months, then rallied to close up 2.2 percent to 478.89.
The index opened flat from Friday's close at 468.47, fell to 463.55, its lowest intraday trading point since last September, and then made steady gains throughout the day.
"What we are getting today is a dead cat bounce in what remains a depressed market," A.G. Edwards analyst Robert Buchanan said. "The bears out there are probably talking about a recession and that's what we are seeing."
By the end of the trading day, there were more gainers among retailers than losers. Among the winners were Pacific Sunwear of California Inc., up 6.5 percent to close at $16.98; J.C. Penney Co. Inc., up 5.8 percent to close at $69.53, and Kohl's Corp., up 5.2 percent to close at $60.31. Shares of Tiffany & Co. lost ground, down 5.6 percent to close at $45.82.
Meanwhile, shares of Hot Topic Inc. marked a new 52-week low of $7.47 and closed down 3.7 percent to $7.97. In the past 52 weeks, the stock traded between $8.16 and $14.45.
Last week, Buchanan cut his rating on Hot Topic to "sell" from "hold" based on negative performance momentum and dull back-to-school prospects.
"I think this is a good management team but they're stuck in a tough situation. The store base is maxed out at 694 stores," said Buchanan, who noted Hot Topic's past success was rooted in its appeal to the "James Deans of the teen generation," a notoriously hard group to get into the mall.
And shares of The Bon-Ton Stores Inc. hit a new 52-week low Monday after First Albany Capital started coverage of the department store chain with a "neutral" rating.
"We believe that Bon-Ton should trade at a discount to the peer group because of the increasing reliance on [the second half of 2007, particularly the fourth quarter], to achieve management's guidance, and the uncertainty that the back-end weighting creates, as well as Bon-Ton's significant debt load," said First Albany analyst Paula Kalandiak in a research note.Shares of Bon-Ton closed down 11 percent to $20.81. Earlier Monday, the stock fell to a new 52-week low of $20.27, down from its previous low of $23.12.
“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