Encouraging news about consumer spending helped retail shares outperform the broader market.
The S&P 500 Retailing Industry Group was up 0.6 percent to 863.49 as the closing bell sounded. That was better than the fractional decline in the S&P 500, down less than 0.1 percent to 1,883.68, and the 0.1 percent drop-off of the Dow Jones Industrial Average to 16,558.87 one day after it ended trading with a record high close of 16,580.84.
Investors were encouraged by the Commerce Department’s report of a higher than expected 0.9 percent increase in personal spending during March and a 0.2 point lift in the number for February, up to 0.5.
That helped energize many retail stocks. Among those tracked by WWD, Burlington Stores Inc. registered the largest increase, up 5.4 percent to $27.40, after it priced a secondary stock offering at $25.75 a share. The 12 million shares are coming from existing stockholders and will not result in any proceeds for the company.
A number of teen and specialty retailers enjoyed increases, including Christopher & Banks Corp., up 5 percent to $6.55; Zumiez Inc., up 2.9 percent to $25.17, and, on the day after it said it would reconstitute its board, Abercrombie & Fitch Co., up 2.9 percent to $37.84.
However, Aéropostale Inc. shares dropped 1 percent to $4.92 after it said late Wednesday that it would close its 125 mall-based P.S. from Aéropostale kids stores and put a cost reduction program in place.
The steepest decline among U.S. fashion, retail and beauty stocks by far came from Avon Products Inc., with shares down 10.2 percent to $13.72. Avon began the day by reporting a wider net loss for its first quarter while saying it would pay about $135 million to settle allegations that it violation the Foreign Corrupt Practices Act.
Markets in Paris, Frankfurt and Milan were closed in celebration of May Day while in London the FTSE 100 rose 0.4 percent to close at 6,808.87. Shares of the French Connection Group rallied 7.5 percent to close at 81 pence while Next Plc shares rose 2 percent to 66.50 pounds and Mulberry Group shares picked up 1.4 percent to close at 6.85 pounds.
Among a small group of shares to lose ground was Koovs, off 4.8 percent to 1.59 pounds.
The pound traded for $1.66 against the U.S. dollar.
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
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Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
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For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)