Retail stocks treaded water Monday, finally slipping 0.7 percent as investors took a wait-and-see approach to the economic stimulus plan being hammered out in Washington.
The S&P Retail Index declined 2.03 points to 277.46. The Dow Jones Industrial Average dropped 0.1 percent, or 9.72 points, to 8,270.87.
In a letter to investors, hedge fund manager William Ackman apologized for the performance of his fund that invests in Target Corp., as the stock has lost 51.6 percent of its value since his initial investment was made public in July 2007. Shares of Target dipped 0.9 percent to $32.73 Monday.
Referring to the Pershing Square IV fund that holds Target shares, Ackman wrote: “I am deeply disappointed by PSIV’s dreadful performance and I apologize profusely for the fund’s results to date.”
Ackman’s Pershing Square Capital Management beneficially owned 72.9 million shares of Target’s common stock on Friday, or about 9.7 percent of the 752.8 million outstanding as of Dec. 3, according to a filing with the Securities and Exchange Commission. In August, Ackman held 73.9 million shares of the firm, or about 9.5 percent of those outstanding at that time.
Ackman and Pershing Square continue “to believe in their fundamental investment case for Target and that the company’s common stock is undervalued at current market prices,” the filing said.
Even so, Ackman offered investors in his Pershing Square IV fund an opportunity to either add additional capital or cash out, as well as a way to ameliorate losses by waiving certain fees in the firm’s other funds.
Ackman presented his strategy for Target in October, which included spinning off the land under the firm’s stores and forming the country’s largest real estate investment trust. The retailer rejected the plan.
The recession has focused the attention of many investors and companies on the importance of having cash on hand.
To wit, Developers Diversified Realty Corp. said Monday that it closed on deals to sell five former Mervyns sites to Kohl’s Corp. and is using the proceeds to pay down debt. The sale included stores at Northridge Plaza in Northridge, Calif.; College Grove Shopping Center in San Diego; Nellis Crossing in Las Vegas; Pear Tree Center in Ukiah, Calif., and Grand Canyon Shopping Center in Las Vegas.
Developers Diversified, which owns and manages about 720 retail properties, said it also closed on the sale of its Ormond Town Square in Ormond Beach, Fla., last month, generating $22 million, prior to closing costs. The Cleveland-based developer has more than $100 million in assets that are under contract for sale or subject to letter of intent.
EXCLUSIVE: @tomford is opening its first-ever beauty store. The boutique, which opens November 20 in London’s Covent Gardens, was designed with the over-the-top glam Ford is known for. Read the full story on WWD.com, link in bio. #wwdbeauty #wwdnews (📷: Simon Wagner) #TomFordBeauty
New York-based DJ @harleyvnewton threw a party to celebrate the holiday collection of her dress and pajama line @hvn at the Ladurée Beverly Hills. It Girls @katebosworth, @rashidajones and more joined in on the fun, which included cocktails, croque monsieur sandwiches and a photo booth. #wwdfashion (📷: Owen Kolasinski/BFA.com)
For the holidays, @Burberry partnered with 20-year-old artist @blondeymccoy on a series of three outdoor murals in downtown Manhattan. The murals are McCoy’s interpretation of a Christmas eve party, the idea of charity and the spirit of family. His third mural, pictured here, is the most personal. The image depicts McCoy’s grandparents and father in London’s Trafalgar Square in the Seventies. “My work often features lots of sentimental objects.” #wwdeye
For spring 2018, designers applied bold colors and cartoonish motifs on everything from sneakers and belts to key chains. See all the top men’s accessories trends on WWD.com. #wwdtrends (📷: George Chinsee; Prop Styling by @rnasti; Market Editor: @luiscampuzano)
The @dior-sponsored @guggenheim international gala pre-party has a history of drawing cool-girl musical acts to serenade the crowd –– and last night was no exception. @haimtheband performed songs both new and old, and lured a star-studded audience with the likes of Rebecca Hall, Kate Mara, Mamoudou Athie and more. #wwdeye (📷: @lexieblacklock)
In a partnership between the @metopera and the @englishnationalopera, “Marnie” was born. The opera, with costumes sponsored by @mrporterlive, is an adaptation of the 1961 thriller by Winston Graham. Arianne Phillips, who created the costumes, is no rookie: She’s styled Madonna for her tours and created costumes for a myriad of films in the past. Read WWD’s interview with Phillips, where she talks about her inspiration for the opera’s costumes on WWD.com #wwdfashion
@barneysnyc took a different approach to their holiday windows this year. Instead of Christmas decor, Barneys tapped @thehaasbrothers to tell a story of positivity, gratitude and inclusivity via heartwarming silliness and humor. “It’s about kids and it’s about coming together and being family and loving each other,” said Simon Haas. #wwdfashion (📷: @joshuascottphoto)
Beauty influencer @kandeejohnson makes her foray into hair care with a collaboration with @ogx_beauty — making it the first time that OGX has teamed up for a product creation. The collab includes shampoos and conditioners in three scents. At 39 and a mom, Johnson is a different profile than the emerging social media stars, but is considered one of the pioneers of the digital beauty influencer world. Read WWD’s interview with her on wwd.com, including the strangest beauty product she’s ever tried #wwdbeauty