Retail stocks managed a 1.6 percent gain last week despite a decline on Friday, but the advance wasn’t strong enough to prevent their first losing month since January.
The S&P Retail Index ended Friday’s trading session at 443.45, down 1.2 percent for the day. The pullback erased some, but hardly all, of the appreciation from Thursday’s 3.2 percent rally. The sector ended May with a 6.7 percent decline, the first down month since January, when it was off 3.3 percent. The index began trading this week 11.3 percent off the 499.91 high for the year reached on April 26.
Retail issues have been sensitive to the increasingly cautionary language used by stores in providing guidance about the second quarter and the rest of this year, even as retailers generally met or exceeded analysts’ expectations in reporting first-quarter results.
Of 172 fashion, beauty and retail issues monitored by WWD, last week, 117 had increases and 50 had decreases. Five were flat. Only 18 had increases the week of May 17.
The Dow Jones Industrial Average lost 1.2 percent on Friday, to close at 10,136.63, and was off 0.6 percent for the week and 7.9 percent for the month. While the S&P Retail Index remains ahead for the year with a 7.9 percent gain, the Dow is down 2.8 percent since Dec. 31.
In Europe, London’s FTSE 100, Paris’ CAC 40 and Frankfurt’s DAX all improved between 2 and 2.5 percent last week, but were down 6.6 percent, 7.9 percent and 3.1 percent, respectively, for the month. Growing confidence in the Eurozone’s ability to manage Greece’s debt crisis gave way to new fears on Friday when Fitch Ratings downgraded Spain’s credit rating one notch.
In Asia, Hong Kong’s Hang Seng Index finished ahead 1.1 percent for the week but was off 6.4 percent for the month. Tokyo’s Nikkei 225 lost 0.2 percent for the week to bring its May drop-off to 11.7 percent. Shanghai’s SSE Composite Index gained 2.8 percent last week, but its May and year-to-date declines stood at 7.5 percent and 19 percent, respectively.
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)