Retail shares limped into the final week of July with a 1.1 percent decline Monday and lagged the market, which managed a modest rise and was buttressed by an uptick in new home sales.
The S&P Retail Index fell 3.75 points to 347.64, but is still within striking distance of its high for the year, 356.17, reached Thursday. The Dow Jones Industrial Average started off the week with an increase of 0.2 percent, or 15.27 points, to 9,108.51 — the third consecutive close above 9,000.
Retailers on the rise included The Talbots Inc., up 8 percent to $4.87; Dillard’s Inc., 5.1 percent to $9.66; Saks Inc., 4.4 percent to $4.99, and AnnTaylor Stores Corp., 3.9 percent to $10.89.
Shares of Coach Inc., which reports fourth-quarter results today, fell 3 percent to $28.43 after a downgrade from Lazard Capital Markets analyst Todd Slater.
Slater reduced his recommendation on the firm to “hold” from “buy,” noting the shares jumped 24 percent in two weeks.
“We would take some chips off the table into Tuesday’s earnings,” said Slater, adding it was still not certain that Coach’s business had stabilized.
The analyst said comparable-store sales at Coach’s outlet stores could be decelerating, even as the full-price stores have been “invigorated” by lower-priced goods.
Despite continued concerns about retail, there are tenuous hints the economy is perking up.
June sales of new homes increased 11 percent from May to a seasonally adjusted annual rate of 384,000, according to the Commerce Department. But the housing market is still a long way from full recovery and the number of new homes sold last month marked a 21.3 percent decline from a year earlier.
On the downside, Dow component Verizon Communications Inc. said it would lay off 8,000 workers in the second half. The national unemployment rate is already at a 26-year high of 9.5 percent.
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