NEW YORK — Retail shares outpaced the greater market’s rally Tuesday, though there was little to indicate the sector’s fundamentals were improving.
The Standard & Poor’s retail index shot up 5.4 percent, or 14.85 points, to 290.25, while the broader S&P 500 was up 4.7 percent, or 39.82 points, to 881.26.
Fueled by better-than-expected quarterly results from General Motors, Citigroup and Johnson & Johnson, the Dow Jones Industrial Average climbed 4.8 percent, or 378.28 points, to 8,255.68. The Nasdaq surged 5.1 percent, or 61.91 points, to 1,282.44.
WR Hambrecht & Co. analyst Bill Dreher described the retail run-up as "more of a technical rally. The fundamentals have not changed."
As the holiday season approaches, Dreher said, "We expect a return to some of the more fundamental issues of slowing sales, additional expenses and a strong likelihood of [fourth-quarter] earnings estimate reductions, which are going to weigh on the stocks." Echoes of the West Coast port closure that ended last week, he said, will create the bulk of these additional expenses.
Midwest Research’s Jeff Stinson added that shares of many of the apparel retailers probably have "a little bit extra to make up for," as they have been among the hardest hit in the market’s recent depressions.
Department stores making up lost ground included Sears Roebuck, increasing 8.1 percent to $36.39; Federated Department Stores, 7.4 percent to $31.55; Kohl’s, 6.2 percent to $58.60; J.C. Penney, 6.1 percent to $17.55; Dillard’s, 6 percent to $18.99; Saks Inc., 5.8 percent to $10.84; May Department Stores Co., 5.5 percent to $24.35, and Nordstrom, 5.1 percent to $19.30.
Among discounters, shares of Target were up 6.8 percent to $32.09 while Wal-Mart’s stock rose 4 percent to $56.29.
Specialty players getting lifts in their market cap included American Eagle, up 14.1 percent to $14.05; Aeropostale, 13.1 percent to $9.05; Abercrombie, 11.5 percent to $18.70; Pacific Sunwear, 9.7 percent to $20.95; Sports Authority, 9.6 percent to $5.85; Charlotte Russe, 9 percent to $9.49; Urban Outfitters, 8.1 percent to $22.96; Wet Seal, 7.9 percent to $10.68; Bebe, 7.2 percent to $13.93; Mother’s Work, 7.1 percent to $35.84; Chico’s FAS, 6 percent to $19; Charming Shoppes, 5.9 percent to $5; Talbots, 5.8 percent to $25.49; Too, 5.7 percent to $23.88, and Limited Brands, 5.4 percent to $15.30.
“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
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast