Retail stocks fell short in their bid for a 10th consecutive day of gains Tuesday after the Federal Reserve Board’s Open Market Committee issued a lukewarm statement about the economy that included warnings about deflation.
The S&P Retail Index spent some of the day in positive territory but finished down 1.70 points, or 0.4 percent, at 445.26, its first losing session since Sept. 7. An up day would have been the 10th consecutive winner for the index and would have tied a streak that dates back to January 2004, less than two years after its recalibration.
Although the Fed’s statement appeared to pour cold water on stocks Tuesday afternoon, the Dow Jones Industrial Average, unlike the other major indices, did manage to advance, rising 7.41 points, or 0.1 percent, to 10,761.03.
The Fed kept the federal funds rate at its current level of zero to 0.25 percent and stated that the weakness of the economic recovery is “likely to warrant exceptionally low levels…for an extended period.” However, it noted that inflation was “likely to remain subdued for some time before rising to levels the committee considers consistent with its mandate” to promote employment and price stability. This added to concerns that retailers, including those in the apparel sector, could be hamstrung by a lack of price elasticity going forward.
The Fed also said it was “prepared to provide additional accommodation if needed to support the economic recovery” and return inflation to more desirable levels.
Among fashion’s gainers on Wednesday was Frederick’s of Hollywood Group Inc., which recently revealed its intention to exit its wholesale business, up 5.5 percent to 96 cents; Liz Claiborne Inc., up 2.1 percent to $5.72, and Express Inc., up 1.6 percent to $15.10. On the other side of the ledger, The Buckle Inc. shed 8.4 percent, to $26.69, for the biggest decline among the 171 equities tracked by WWD. Other notable declines came from apparel specialty stores, including J. Crew Group Inc., off 4 percent to $33.10; Christopher & Banks Corp., 3.9 percent to $7.47, and Limited Brands Inc., 3.4 percent to $26.48.
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews