After dropping a total of 2.3 percent in the previous two days, retail stocks fell 0.3 percent on Wednesday as a new report showed the job market, while still tough, improved a bit last month.
Private employers shed 298,000 jobs in August, a slowdown in the rate of decline from the 360,000 positions eliminated in July, according to the ADP National Employment Report. It was the smallest drop in employment since September 2008.
The job market is closely tied to consumer spending and remains a focus of policy makers, according to the minutes of the Federal Reserve’s policy meeting last month. Uncertain job prospects, reduced household wealth, tight credit and high debt levels are all weighing on consumers.
“With these forces restraining spending, and with labor income likely to remain soft, participants [of last month’s meeting] generally expected no more than moderate growth in consumer spending going forward,” the Fed said in minutes released Wednesday.
The S&P Retail Index dipped 1.16 points on Wednesday to 356.77, as the Dow Jones Industrial Average retreated 0.3 percent, or 29.93 points, to 9,280.67.
Shares of Zale Corp. fell 8.6 percent to $5.39 after the jewelry retailer said it needed to make about $13 million in pretax accounting adjustments to previously reported results and delayed release of its fourth-quarter results, originally expected on Wednesday, until Sept. 9.
About $6.3 million of the noncash adjustments date to before 2000. The adjustments were identified as the company closed its books for the year.
“The company is in the process of finalizing the appropriate accounting treatment for those adjustments,” Zale stated.
Casual Male Retail Group Inc. declined 2 percent to $2.93 after the company said it agreed to sell 5 million shares of its common stock to institutional investors for $2.75 a share.
David Levin, president and chief executive officer, said the big and tall retailer would use the $12.6 million in net proceeds to “reduce debt, enhance liquidity and create a more flexible balance sheet and capital structure for the company during a very difficult and uncertain economic climate.”
The company has no current plans to sell additional shares.
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)