Retail stocks treaded water for most of the week, but wound up with a small gain despite weak same-store sales results on Thursday and concerns about the fall season.
The S&P Retail Index closed Friday at 309.62, down 0.6 percent for the day but ahead 0.2 percent for the week and 10.9 percent for the year.
In contrast, the major indices all finished in negative territory for the week. A 0.5 percent decline Friday left the Dow Jones Industrial Average at 8,146.52, down 1.6 percent for the week and 7.2 percent for the year. The S&P 500 concluded the week at 879.13, off 0.4 percent on Friday, 1.9 percent for the five days and 2.7 percent in 2009.
The Nasdaq is up 11.4 percent for the year after a 2.3 percent decline for the week and a 0.2 percent advance on Friday to 1,756.03.
Phillips-Van Heusen Corp. on Friday rose 19 cents, or 0.7 percent, to $26.61, 4.1 percent behind its close before the extended July 4 weekend but up 32.2 percent on the year.
On Thursday, Standard & Poor’s Ratings Services revised its outlook for PVH to “negative” from “stable” but left its corporate credit rating at “BBB-minus.”
Although PVH is expected to benefit from cost-saving initiatives, including the paring down of its retail portfolio, and higher margins in its Calvin Klein licensing business, S&P credit analyst Bea Chiem noted operating results will be under pressure because of weakness at retail, where the ratings agency doesn’t expect improvement until 2010.
PVH’s credit rating could be lowered if its leverage ratio moves above 3.5, S&P said, estimating that it moved up to 3 from 2.3 in the year ended May 3.
While other retailers were reporting same-store sales for June on Thursday, Bebe Stores Inc. flew slightly under the radar when it reported its comparable-store sales for the fourth quarter ended July 4 had slipped 29.2 percent and earnings per share for the period would be “at or below” the low end of its previous guidance of 2 to 10 cents a share. Shares ended the week at $5.90, 9.4 percent below their week-ago level.
Last Tuesday, Charles & Colvard Ltd., the developer and manufacturer of the man-made jewel moissanite, suffered the worst decline of all stocks tracked by WWD — a 28.2 percent drop to 42 cents — after ending its management services agreement with Bird Capital Group Inc. and beginning a search for a chief executive officer to succeed Richard Bird. However, shares rebounded slightly and finished the week down 11.5 percent at 46 cents.
Bird and his firm were retained in February. However, C&C said the agreement was ended because of “mounting evidence that recovery of the depressed worldwide jewelry markets will be later and slower than previously expected” and the determination that its business model “must be modified to work within the current economic environment as a low-cost operation.”
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
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye