Retail shares slid 0.8 percent Tuesday as investors failed to maintain Monday’s momentum and Washington and Wall Street continued to debate the intricacies of their love-hate relationship.
The lion’s share of Monday’s large advances were retained as the S&P Retail Index dipped 2.33 points to 286.24 points and the Dow Jones Industrial Average fell 1.5 percent, or 115.65 points, to 7,660.21.
Retail shares shot up 6.4 percent on Monday after the government unveiled a long-awaited plan to pool up to $1 trillion of toxic real estate debt in a public-private partnership. Although Wall Street applauded the move to free banks of their questionable debt, the specter of more onerous regulations raised concerns, especially since Washington has already taken significant stakes in some of the country’s largest banks.
Treasury Secretary Timothy Geithner said more changes would be necessary to repair the breakdown in the financial system, a failure highlighted by the American International Group bailout and politically sensitive retention bonuses to the insurer’s executives.
“Our system permitted a scale of risk-taking that has caused grave damage to the fortunes of all Americans,” said Geithner in written testimony to the House Financial Services Committee. “We must ensure that our country never faces this situation again. To achieve that goal, the administration and Congress have to work together to enact comprehensive regulatory reform and eliminate gaps in supervision.”
Oversight is also a burning issue in corporate boardrooms throughout the industry, with looming proxy fights to alter the boards of Target Corp. and Charlotte Russe Holding Corp.
On Tuesday, Charlotte Russe’s chairman Jennifer Salopek, on behalf of the retailer’s independent directors, advised shareholders to vote for the company’s nominees and reject the alternative slate proposed by KarpReilly Capital Partners, which tried unsuccessfully to take over the company last year. Shares of Charlotte Russe fell 7.5 percent to $7.01.
From overseeing America’s fastest-growing speciality retailers to codifying cool, WWD talked to the women who are leading the way for the future of beauty. Check out our Instagram Stories to see how these women built today and are creating tomorrow. (📸: @hannah_khymych) #wwdbeauty
For @laperlalingerie's spring 2018 show, the brand chose to host their event at @thevenetianmacao. With Chinese megastars @bingbing_fan and @hubing in attendance, La Perla debuted a rock ‘n’ roll-inspired collection. The show marked the start of Sands Macao Fashion Week, which runs from October 19 to 24 — the city’s first such event. Pictured here are models backstage with glimmering eyes. #wwdfashion (📷: Cheuk-Yin To)
Trending for spring 2018: top stitch design. Gone are the days of stitch just for seams — designers are using the once-minimal detail to create strong decorative elements. (📷: Paola Testa; Styled by @andrew_shang) #wwdfashion
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)