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.
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