Retail shares rose 3.2 percent Thursday as investors shrugged off the bankruptcy filing of mall operator General Growth Properties Inc. and mixed signals on the economy.
The S&P Retail Index gained 10.22 points to 328.33, outpacing the Dow Jones Industrial Average, which advanced 1.2 percent, or 95.81 points to 8,125.43.
Macy’s Inc. was among the retailers being embraced by investors, rising 8.3 percent to $12.52. The department store just added a new line from Rachel Roy to its list of exclusives. Rachel Rachel Roy will be produced with the help of Jones Apparel Group Inc., which owns a 50 percent stake in all Rachel Roy trademarks, and will bow in 85 Macy’s doors in August. Jones also got the nod of approval from investors and saw it stock jump 11.5 percent to $6.57.
However, Macy’s and J.C. Penney Co. Inc. both saw their credit ratings reduced to junk status by Standard & Poor’s Ratings Services, which assigned subinvestment ratings of “BB,” down from the lowest investment grade, “BBB-minus.”
Neiman Marcus Inc. was dropped to “B” from “B-plus,” and Dillard’s Inc. to “B-minus” from “B-plus.” Nordstrom Inc. remained in investment territory, but was lowered to “BBB-plus” from “A-minus.” All the downgrades were based on expectations of a recovery that will be “slow and dependent on an improvement in the macroenvironment,” S&P said.
Retail stocks weren’t affected by the credit rating adjustments, which came late Thursday. Gainers included Zale Corp., up 17.8 percent to $5.04; AnnTaylor Stores Corp., 14.8 percent to $7; Tiffany & Co., 11.7 percent to $26.50; Sears Holdings Corp., 9.2 percent to $58.29, and Saks Inc., 8.8 percent to $3.10.
Repeating a trend of recent weeks, economic indicators that could be viewed as bad, but not worsening, supported stocks.
Last week’s 610,000 new jobless claims marked an improvement from the previous week, when 663,000 applied for unemployment assistance, according to seasonally adjusted figures from the Labor Department.
EXCLUSIVE: @tomford is opening its first-ever beauty store. The boutique, which opens November 20 in London’s Covent Gardens, was designed with the over-the-top glam Ford is known for. Read the full story on WWD.com, link in bio. #wwdbeauty #wwdnews (📷: Simon Wagner) #TomFordBeauty
New York-based DJ @harleyvnewton threw a party to celebrate the holiday collection of her dress and pajama line @hvn at the Ladurée Beverly Hills. It Girls @katebosworth, @rashidajones and more joined in on the fun, which included cocktails, croque monsieur sandwiches and a photo booth. #wwdfashion (📷: Owen Kolasinski/BFA.com)
For the holidays, @Burberry partnered with 20-year-old artist @blondeymccoy on a series of three outdoor murals in downtown Manhattan. The murals are McCoy’s interpretation of a Christmas eve party, the idea of charity and the spirit of family. His third mural, pictured here, is the most personal. The image depicts McCoy’s grandparents and father in London’s Trafalgar Square in the Seventies. “My work often features lots of sentimental objects.” #wwdeye
For spring 2018, designers applied bold colors and cartoonish motifs on everything from sneakers and belts to key chains. See all the top men’s accessories trends on WWD.com. #wwdtrends (📷: George Chinsee; Prop Styling by @rnasti; Market Editor: @luiscampuzano)
The @dior-sponsored @guggenheim international gala pre-party has a history of drawing cool-girl musical acts to serenade the crowd –– and last night was no exception. @haimtheband performed songs both new and old, and lured a star-studded audience with the likes of Rebecca Hall, Kate Mara, Mamoudou Athie and more. #wwdeye (📷: @lexieblacklock)
In a partnership between the @metopera and the @englishnationalopera, “Marnie” was born. The opera, with costumes sponsored by @mrporterlive, is an adaptation of the 1961 thriller by Winston Graham. Arianne Phillips, who created the costumes, is no rookie: She’s styled Madonna for her tours and created costumes for a myriad of films in the past. Read WWD’s interview with Phillips, where she talks about her inspiration for the opera’s costumes on WWD.com #wwdfashion
@barneysnyc took a different approach to their holiday windows this year. Instead of Christmas decor, Barneys tapped @thehaasbrothers to tell a story of positivity, gratitude and inclusivity via heartwarming silliness and humor. “It’s about kids and it’s about coming together and being family and loving each other,” said Simon Haas. #wwdfashion (📷: @joshuascottphoto)
Beauty influencer @kandeejohnson makes her foray into hair care with a collaboration with @ogx_beauty — making it the first time that OGX has teamed up for a product creation. The collab includes shampoos and conditioners in three scents. At 39 and a mom, Johnson is a different profile than the emerging social media stars, but is considered one of the pioneers of the digital beauty influencer world. Read WWD’s interview with her on wwd.com, including the strangest beauty product she’s ever tried #wwdbeauty