Retail stocks continued to test new highs for the year, rising 0.9 percent Tuesday despite a consumer holiday spending survey that suggested stores still have some tough sledding ahead.
Thirty percent of consumers plan to spend less this holiday season than last year, according to a survey by The NPD Group Inc. That’s an increase from last year, when 26 percent of shoppers were looking at holiday belt tightening.
“Consumers will be looking for the right gift, rather than the most extravagant or expensive one,” said Marshal Cohen, the research group’s chief industry analyst. “That combined with the soft numbers we are up against from holiday last year, and I think we will see [sales] growth, albeit a modest 0.5 percent to 1.5 percent.”
Others have predicted a 1 percent holiday sales drop or no growth compared with last year’s very weak showing.
Cohen said shoppers would be picking up more sweaters, fragrances, music, books, movies and wallets as gifts this year. Forty-nine percent of consumers plan to buy apparel as a gift this holiday season, the same as last year.
Retail stocks might have proven to be a better gift last year than much of what the stores were selling. The S&P Retail Index is ahead 40.1 percent so far this year. The index, which established a new 52-week high of 392.89 during the trading day Tuesday, settled some and ended with a 3.42-point rise to 391.23.
Among the retail gainers were Pacific Sunwear of California Inc., up 5.5 percent to $6.48; Dillard’s Inc., 2.2 percent to $15.08; Saks Inc., 2.1 percent to $6.35, and Chico’s FAS Inc., 2.1 percent to $12.72. Among the stocks to miss the rally was The Buckle Inc., which saw its shares decline 5.1 percent to $33.22.
Investors have flocked to retail stocks this year, in part because layoffs, store closures and other expense cuts stores have implemented are expected to help some chains drive fourth-quarter profits up even if sales fall. Whether stocks can continue to rise in the year ahead without a resumption of top-line growth remains to be seen.
Comparable-store sales for the first week of October rose 0.6 percent, according to a weekly report from the International Council of Shopping Centers and Goldman Sachs.
“Slowly but surely, the underlying sales performance is inching higher,” said Michael Niemira, chief economist at the shopping center trade group, who predicted flat comps in October.
@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)