Aided by stores’ recovering sales and ongoing operational discipline, as well as a flurry of merger and acquisition interest at the end of the year, retail stocks posted a 23.5 percent gain in 2010 and moved within points of their historic highs at year’s end.
Even after a 0.8 percent decline in the final week of the year, the S&P Retail Index ended 2010 at 507.79 versus its 411.12 finish in 2009. Its 52-week high through 2010 was the 514.64 reached on Dec. 7, and its 512.35 close on Dec. 21 was its best daily finish since July 20, 2007.
With their 47.2 percent gain in 2009, retail issues essentially recovered the ground they had lost since the end of 2007, which concluded with the index at 409.94. The strong gains last year brought them close to their high-water marks of early 2007, before growing problems in the housing market and rising gas prices pressured them downward. Since its June 2002 recalibration, the retail index’s highest point was the 538.50 reached on Feb. 20, 2007.
However, retail stocks sold off 31.9 percent in 2008 as the financial crisis spread and touched off the worst recession since the Great Depression.
Continuing the index’s upward trajectory in 2011 won’t be easy. Although M&A interest remains high in the wake of deals for retail firms including J. Crew Group Inc. and Jo-Ann Stores Inc., pressures on retailers will escalate in the new year. They will be dealing with more difficult comparisons than they did in 2010, and escalating costs for cotton, transportation and other goods and services are bound to force them to choose between passing along a portion of the inflationary tab to consumers, jeopardizing sales or absorbing price boosts, at the expense of margins.
Still, 2010 will be remembered as a year when an investment in retail was generally rewarded with a strong return. The 23.5 percent growth rate was more than twice the 11 percent gain of the Dow Jones Industrial Average, which closed the books on last year at 11,577.85, and 83.1 percent better than the 12.8 percent growth registered by the S&P 500. It also outpaced the Nasdaq Composite Index, up 17 percent to 2,654.05, and the strongest of the European or Asian indices, Germany’s DAX, which grew 16.1 percent to 6,914.19.
Among other overseas indices, London’s FTSE 100 was up 9 percent and the Hang Seng Index in Hong Kong rose 5.3 percent. Decliners for the year included the CAC 40 in Paris (down 3.3 percent), Tokyo’s Nikkei225 (down 3 percent) and Shanghai’s SSE (down 14.3 percent).
The three-year trend in the S&P Retail Index is up 23.9 percent, just slightly higher than the 2010 percentage gain.
@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 (📷: Dominique Maître)
@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)