Retail stocks rallied on Wednesday as the broader market rose to its biggest gain in three months after Intel Corp.’s strong performance.
The S&P Retail Index picked up 8.02 points, or 2.5 percent, to close at 330.89.
Gains among retailers and apparel vendors were nearly universal. Fashion and retail issues benefiting from the uptick the most were Stage Stores Inc., up $1.09, or 10.9 percent, to $11.12; Macy’s Inc., 91 cents, or 8.3 percent, to $11.93; Charming Shoppes Inc., 34 cents, or 8.3 percent, to $4.45; Nordstrom Inc., $1.51, or 7.5 percent, to $21.62; American Apparel Inc., 27 cents, or 7.5 percent, to $3.87, and Coach Inc., $1.54, or 6.2 percent, to $26.31.
Intel’s strong performance sent the Dow Jones Industrial Average up 256.72 points, or 3.1 percent, to close at 8,616.21, the S&P 500 was up 26.84 points, or 3 percent, to 932.68, and the Nasdaq Composite rose 63.17 points, or 3.5 percent, to 1,862.90.
The Dow and the S&P 500 hit their highest levels since June.
The rally in retail stocks came just a day after optimism about Goldman Sachs helped propel the major indices and pushed the S&P Retail Index to a gain of 1.6 percent
The stock market appeared to shrug off the Labor Department’s Consumer Price Index, which registered an overall increase of 0.7 percent in June, but declined 1.4 percent year-to-year. The monthly increase was driven by a significant jump in gas prices. The so-called core prices, which exclude the volatile food and energy sectors, rose 0.2 in June and 1.7 percent compared with a year earlier.
Retail apparel prices bounced back in June, rising a seasonally adjusted 0.7 percent after dropping for three straight months, the Labor Department said.
Compared with a year earlier, the cost of apparel at retail advanced 1.5 percent, according to the CPI. Apparel prices declined 0.2 percent in March, April and May.
Women’s apparel prices were up 1.6 percent in June and increased 2.5 percent compared with a year earlier. The increase in women’s apparel was the largest for the month of June since 1978, according to the Labor Department. Men’s apparel prices fell 1.1 percent in June, while remaining flat in 12-month comparisons.
The rise in retail apparel prices overall and in women’s is mostly attributable to seasonal factors affected by the stark contraction of the economy, said Charles McMillion, president and chief economist at MBG Information Services. McMillion said sales of spring and summer goods started earlier this year, dragging prices down in previous month, and allowing a rebound in June, as some fresh merchandise hit the stores.
“Seasonal promotional programs have been dramatically altered by this severe downturn,” he said. “People are taking deeper and earlier markdowns.”
“In general, today’s report on consumer prices suggests very little, if any, pressure on consumer prices other than the temporary surge in gasoline prices,” said Brian Bethune, chief U.S. financial economist at IHS Global Insight.
Retail prices for women’s outerwear increased 2.7 percent in June and 7.4 percent in 12-month comparisons. Women’s dresses cost 2.8 percent more in June and 11.8 percent year-over-year. Women’s suits and separates prices increased 1.6 in June and 0.5 percent from a year earlier. Prices in the broad women’s underwear, nightwear, sportswear and accessories category rose 1.8 percent in June and 2.5 percent for the 12 months. Girls’ apparel costs increased 1.5 percent in June, but declined 0.1 percent year-to-year.
Men’s suits, sport coats and outerwear prices fell 3.2 percent last month and 7.6 percent from a year earlier. Men’s furnishings costs increased 1.4 percent in June and 2.3 percent in 12-month comparisons. Men’s shirts and sweaters fell 1.7 percent in June, but were up 3 percent from a year earlier. Prices for men’s pants and shorts declined 2.5 percent in June, but rose 0.3 percent year-over-year. Boys’ apparel prices were 2.1 percent higher in June and 3.7 for the year.
@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)
@heriethpaul and @gracebol have a moment on the @victoriassecret fashion show 2017. See every look from the runway on WWD.com. Link in bio. (📷: @giovanni_giannoni_photo) #wwdfashion #victoriassecret #VSFashionShow
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia