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.”
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