Retail shares rebounded 2.5 percent Wednesday, but lagged the broader market as stocks recovered from concerns that the banking sector might need to be propped up anew.
The Standard & Poor’s Retail Index rose 6.46 points to 269.36, as the Dow Jones Industrial Average advanced 3.5 percent, or 279.01 points, to 8,228.10.
The jump followed a 5.9 percent drop in retail shares on Tuesday, their worst showing since Dec. 1. The sector was pulled down as investors worried the government might have to take even deeper positions in the nation’s banks.
Among the decliners Wednesday, Dallas-based jewelry retailer Zale Corp. stood out with a 27.4 percent drop to $1.72, a new all-time low. Over the past year the stock has traded as high as $30.89. Late Tuesday afternoon, Zale said chief financial officer Rodney Carter had left the firm and that its controller, Cindy Gordon, would pick up his duties on an interim basis.
“The board and management asked for Mr. Carter’s resignation,” said David Sternblitz, Zale’s vice president and treasurer, in an interview. “They wanted a different skill set in a cfo in this type of an environment.”
Sternblitz said Zale was looking for a financial chief to help further its efficiency and restructuring programs, adding that Carter’s departure did not signal any lack of confidence in the firm’s accounting practices or financial position.
Late Wednesday, Moody’s Investors Service lowered The Bon-Ton Stores Inc.’s credit rating to “B3” from “B2,” one tick lower within the “highly speculative” category, with a negative outlook. Earlier in the day, the regional department store retailer’s stock fell 7 cents, or 5.3 percent, to $1.25.
Retailers picking up ground for the day included J. Crew Group, up 10.6 percent to $9.99; Nordstrom Inc., 8.5 percent to $13.03; Urban Outfitters Inc., 6.1 percent to $15.93; Macy’s Inc., 6.1 percent to $9.26; The Dress Barn Inc., 5.8 percent to $9.16; Bebe Stores Inc., 5 percent to $5.70; Target Corp., 4.9 percent to $34.14, and Hot Topic Inc., 4.8 percent to $8.71.
Shares of many vendors also perked up Wednesday, including those of Kenneth Cole Productions Inc., up 13.7 percent to $6.98; True Religion Apparel Inc., 8.3 percent to $11.62; Warnaco Group Inc., 6.8 percent to $20.80; Liz Claiborne Inc., 6.7 percent to $2.23, and VF Corp., 4.5 percent to $54.48.
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)
@heriethpaul and @gracebol have a moment on the @victoriassecret fashion show 2017. See every look from the runway on WWD.com. Link in bio. (📷: @giovanni_giannoni_photo) #wwdfashion #victoriassecret #VSFashionShow
“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