Retail stocks dozed Thursday, slipping fractionally despite an unexpected but welcome decline in first-time jobless claims and a bit of action on the rumor mill, which continues to produce tales — tall or not — of pending private equity takeovers.
The S&P Retail Index fell 0.18 points, less than 0.1 percent, to 467.33 as the Dow Jones Industrial Average declined 12.33 points, or 0.1 percent, to 11,113.95. The Labor Department said initial jobless claims declined by 21,000 last week to 434,000, while economists were looking for claims to remain steady.
Despite word in the London Evening Standard that KKR and The Carlyle Group were mulling an offer of $34 a share for Macy’s Inc., the company’s stock gained just 1.1 percent to $23.29. Such rumors have been rampant over the last couple of months as private equity money, available financing, cheap retail stocks and expected tax changes have combined for an intoxicating financial brew.
But with an enterprise value of $16.6 billion, Macy’s is seen as a pretty big fish to reel in even for private equity powerhouses like KKR and Carlyle. Still, there’s a nagging sense, on the parts of both investors and bankers, that just about anything might happen.
• Ann’s Outlet Extension: AnnTaylor Stores Corp. is accelerating its outlet strategy, particularly for the Loft division, by grabbing former Liz Claiborne locations. About 35 Loft outlets and five Ann Taylor Factory Stores will open during the second quarter of fiscal 2011 at outlet centers across the U.S. About $75 million in incremental fiscal 2011 revenue should be generated by the maneuver, which will be accretive to fiscal 2011 earnings and create about 1,000 jobs. Capital expenditures associated with the plan are seen at around $25 million in fiscal 2011. The company also said there are no direct costs from transferring the locations from Claiborne to Ann Taylor, which currently operates about 92 Ann Taylor outlets and 18 Loft outlets.
• Frederick’s Splits With Movie Star: Frederick’s of Hollywood Group Inc. sold its Movie Star wholesale division to Dolce Vita Intimates Thursday, completing a strategic review of the division that lasted just over a month. According to a Securities and Exchange Commission filing, the purchase price was about $4.5 million, including about $2.7 million for inventory, and is subject to adjustment.
@pantone announced their Color of the Year 2018: Ultra Violet. Nearly 20 months after the musician Prince’s death, fashion is having a purple moment. Varying shades of purple appeared on spring or fall runways, from @christopherkane to @calvinklein. @gucci’s Alessandro Michele bathed his fall runway in ultra violet-colored light at one point. Pantone 18-3838 is meant to “push the boundaries of what inspires us to look upward and outward to the future.” #wwdnews #wwdfashion (📷: @kukukuba)
@badgalriri’s @fentybeauty launch in September was a massive success on social media, powering $72.9 million of earned media value, according to Tribe Dynamics. The brand’s foundation offering sparked conversations about diversity in beauty, launching the growth of emerging influencers and propelling the brand’s support on social media. Today, #fentybeauty won Launch of the Year at the WWD #BeautyIncAwards. (📷: Chema Moya/EPE-EFE)
@marianna_hewitt has become one of the most influential content creators in the beauty space, with almost 800,000 Instagram followers and a newly launched skin care line called @SummerFridays. Today, she was awarded Influencer of the Year at the WWD #BeautyIncAwards. (📸: @sophiachabbott )
As shopping behaviors evolve, the retail experience must follow. Head over to retail experts @colliersinternational’s Knowledge Leader series to read more about the shift in our shopping era. #colliersretail #lovecolliers
@prada opened a pop-up club, called Prada Double Club, in collaboration with German artist Cartsen Höller at @artbasel Miami. Last night, guests – including @youngparis, @ritaora and even Miuccia Prada herself – gathered in a former ice factory where the pop-up is housed for a performance from @wyclefjean. Go to WWD.com for full coverage on all the exhibits, parties and more at #ArtBaselMiami. #wwdeye (📷: @lexieblacklock)
@louboutinworld and @disney are making magic once again, creating a set of shoe designs for the release of “Star Wars: The Last Jedi.” Louboutin designed a pair of shoes for each of the film’s four female leads: Rey (@daisyridrey), Vice Admiral Amilyn Holdo (@lauradern), Captain Phasma (Gwendoline Christie) and Rose Tico (@kellymarietran). The shoes will debut on Saturday at the L.A. premiere of the latest episode. #wwdfashion
Today at the #BeautyIncAwards 2017, WWD will be joined by beauty leaders from around the world as we honor this year's most innovative people, products, brands and places. Follow along here and on Twitter for live coverage from the exclusive event. #wwdsummits (📷: @elizaflorendo)
Exclusive: Beauty superinfluencer @marianna_hewitt is launching her first-ever skin care brand with her business partner @laurengores. Their new line Summer Fridays, which will be sold exclusively at summerfridays.com starting in January, is launching with just one product – a hydrating cream Jet Lag Mask. “We wanted to focus on one product that was amazing,” said Hewitt. Read the full interview on WWD.com. Link in bio. #wwdbeauty #wwdnews
Michelin star-rated chef PJ Calapa marks his first solo endeavor with today’s opening of @scampinyc –– the new Southern Italian restaurant located in Manhattans’ Flatiron District. The upscale yet welcoming environment matches the menu, which includes two types of scampi: traditional Italian langoustines in butter and the Americanized version with shrimp over pasta 🍤 - pictured here. #wwdeye (📷: George Chinsee)