Retail stocks hit fresh multiyear highs Tuesday as investors fosteredhopes that the consumer resurgence seen in January would continue.
TheS&P Retail Index jumped 1.5 percent, or 7.6 points, to 517.13 — itsbest close since July 2007. The Dow Jones Industrial Average increased0.6 percent, or 71.52 points, to 12,233.15, a level not seen since June2008.
Retail gainers included Urban Outfitters Inc., up 5.6percent to $37.06; J.C. Penney Co. Inc., 4.9 percent to $35.03; Chico’sFAS Inc., 4.2 percent to $11.95, and Dillard’s Inc., 3.9 percent to$42.04. Vendors also picked up steam, and among those logging new52-week highs were Under Armour Inc., which closed up 2.3 percent to$66.99; Fossil Inc., 2.2 percent to $78.21, and Polo Ralph Lauren Corp.,1.7 percent to $115.77.
Fast-food giant McDonald’s Corp. helpedspark the consumer-based rally with a 5.3 percent gain in globalcomparable-store sales. Consumers have shown signs of increasedconfidence and expanded credit card debt for the first time in 27 monthsin December, according to a Federal Reserve report issued Monday.
Additionally,the International Council of Shopping Centers and Goldman Sachs saidchain store sales increased 2.2 percent during the week ended Feb. 5 andwere up 2.5 percent on a year-over-year basis. The challenges of winterweather woes notwithstanding, “retailers were able to post a solidsales increase for the first time in four weeks,” said ICSC chiefeconomist Michael Niemira.
Despite the new high, Amy Noblin, ananalyst at Weeden & Co., said concerns about increased sourcingcosts and tough comparisons with last year have taken their toll onretail stocks, which are lagging the overall market in 2011.
“It’sgoing to be hard for anyone to step in with any conviction on thisgroup until we get through earnings season,” she said. “The sourcingcommentary is not good. Most people think that costs in the back half ofthe year can be up 10 to 15 percent, potentially even higher.”
In honor the @CFDA’s announcement of @iamnaomicampbell receiving the Fashion Icon Award at the 2018 #CFDAAwards, which will take place on June 4, here’s a #tbt of the supermodel on @michaelkors’ runway in 1991. #wwdfashion #wwdarchive (📷: George Chinsee)
“I was making the guacamole when my scout saw me,” says model @stuckinteenage on being discovered just six months ago while working at @chipotlemexicangrill. Since then Williams has signed with @dnamodels, walked in her first show at @calvinklein and landed on the cover of @vogueitalia – a high point of any model’s career. To read @lisajlockwood’s full interview with the model on her experiences thus far, head to WWD.com – link in bio. (📷: George Chinsee)
“I love the idea of dialogue, period. It’s where I’ve always gotten my inspiration from: hearing other women speak, their journeys and their paths,” said @hereisgina, who delivered the keynote speech during @sxsw for @createcultivate in partnership with @fossil. For her two panels, Rodriguez chose female empowering, female-led and female entrepreneurs to focus on. Head to WWD.com to read more about her thoughts on Time’s Up, growing up in a family of women and why we “need a girls’ club.” #wwdeye #sxsw (📷: @jgreenery)
Leading luxury brand are shaking things up to keep up with streetwear. Case in point: the arrival of @mrkimjones as artistic director of @diorhomme. Jones, who succeeds @Kris_Van_Assche, is seen as one of the handful of designers who can actually straddle the luxury and streetwear worlds — which could lead to even more changes at established brands. What could this mean for the rest of the menswear landscape? Head to WWD.com to find out what experts predict #wwdfashion (📷: @franckmura)
“It’s like buying groceries. You’re going to buy the best mango, the best mozzarella, the best things. You have to, or others are going to take it all,” said @gabrielahearst on why she uses only the finest fabrics. Last week, Hearst received her first @cfda nomination for Womenswear Designer of the Year, and earlier this month she opened a permanent showroom in Paris. To read @jessiredale’s interview with the designer and find out why this is shaping up to be a big year for her, head to WWD.com. #wwdfashion (📷: @francoisgoize)
“It’s an interesting thing, playing a younger version of your mother. It’s an interesting concept. I adore my mom and love her in every capacity, but it was just something that had never crossed my mind,” says @anniemstarke on playing a young Joan Castleman in “The Wife.” The same role will be played by her mother Glenn Close. Read more about her growing up in the film industry as the daughter of producer John H. Starke and Close and what she has planned for the future #wwdeye (📷: @nataliamantini)
@asics is launching a new streetwear sneaker inspired by its latest ambassador, @steveaoki. The Hyper-Kenzen x Aoki, which will launch at @footlocker stores exclusively tomorrow, is a slip-on style that incorporates the brand’s proprietary Gel technology through beads integrated into the midsole for comfort and endurance. Read the full story on WWD.com.