Shares of Saks Inc. kicked off the second half in style, rising 6.8 percent to $4.73 Wednesday as retailers were generally on the wane.
Things looked bright for Saks from the start, with J.P. Morgan analyst Charles Grom preaching patience to investors in a morning research note titled “Rome Wasn’t Built in a Day.”
But it wasn’t until the early afternoon that Saks really took off, jumping from $4.56 to more than $5 in a matter of minutes before receding slightly. More than 6.4 million shares traded hands Wednesday, above the three-month average of 4.7 million shares. Over the last year, Saks has traded as high as $12.30 and as low as $1.50. The stock inched up 1.1 percent over the first six months of the year.
The luxe firm has been among the hardest-hit retailers in the recession, but has still managed to attract deep-pocketed investors, including Mexican billionaire Carlos Slim Helú, who owns 18.6 percent of the firm, and Diego Della Valle, chief executive officer of Tod’s SpA, who picked up a 5.9 percent stake earlier this year. From February into May, Della Valle paid $30.3 million for shares now worth $40.1 million.
“While Saks is certainly not out of the woods yet, we believe the necessary steps to right-size its business and manage through the current difficult environment have been taken, allowing for margin recovery in the second half of 2009,” wrote Grom, who reiterated his “overweight” rating on the stock with a year-end target price of $6.
The analyst said the chain was getting back into its normal promotional cadence and that reduced fall orders would get inventories in line by the beginning of the third quarter. Still, Grom is projecting at least two more years of losses for the firm, which registered $155 million in red ink last year.
On Wednesday, Saks outshone the S&P Retail Index, which dipped 0.3 percent, or 0.94 points, to 321.61, and the Dow Jones Industrial Average, which rose 0.7 percent, or 57.06 points, to 8,504.06.
There'll be no rest for those headed to Europe for men's, as Paris just closed the gap with Milan. According to a provisional calendar released by the Chambre Syndicale, Paris Men's Week will now open a day earlier on January 16. See new highlights on the official lineup on WWD.com. #wwdnews #wwdfashion (📷: @kukukuba)
BREAKING: Jonathan Saunders is leaving @DVF. The designer has resigned from his position as chief creative officer of Diane von Furstenberg, the company said in a statement on Friday. At the time of his hire, von Furstenberg said Saunders’ arrival symbolized and facilitated her stepping back from the day-to-day duties that occupy the work of a full-time creative director. The British designer joined DVF in May 2016 and was in charge of all product categories. #wwdnews
For @versace_official’s spring ad campaign, the brand emphasized the archival prints from the spring tribute collection dedicated to the late Gianni Versace. Closing out the show were five of Gianni’s favorite models: Cindy, Naomi, Carla, Helena, and Claudia. Bowing on December 18, the new campaign is yet another tribute to supermodel-dom as the images by Steven Meisel are fronted by @iamnaomicampbell, @cturlington, @gisele and more. #wwdfashion
Four-time Oscar-nominated actress Annette Bening has been waiting 20 years to play Gloria Graham in "Film Stars Don't Die in Liverpool," which will be released on December 29. The movie about Graham – a Hollywood star known for her controversial relationship with a younger Englishman named Peter Turner – is based off a memoir Turned wrote. "She felt vulnerable to him, because she loved him, she really did love him. And anyone that we really truly are in love with, we re vulnerable to in a very deep way," said Bening. Read our full interview with the modern icon of an actress on WWD.com. #wwdeye (📷: @ninebagatelles; Styled by @cristinaehrlich)
The crisp white button down: a staple that can be dressed up or down and accessorized throughout the decades. Here, on a Art Basel-goer in 2017 on the left and on the iconic Audrey Hepburn in “Roman Holiday” in 1953 on the right. #tbt #wwdfashion (📷: Andrew Morales)
Known for her work with @victoriassecret, 25-year-old model @georgiafowler is raising her profile in Hollywood. Fowler stars in @vincecamuto’s holiday campaign, which launched in partnership with “Pitch Perfect 3.” “Almost every shoot with Vince Camuto, I’ve had to face a fear…It was definitely a challenge. I’m so grateful for it, though. I’ve always wanted to be a pop star, so that was the perfect chance,” Fowler said. Head to WWD.com to read about Fowler’s experience modeling, including at the #VSFashionShow, and her relationship with Nick Jonas. #wwdeye (📷: @jilliansollazzo)
EXCLUSIVE: Huda Kattan just became the first beauty influencer to land a major beauty deal. Kattan's business, @hudabeauty, has received a minority investment from private equity firm TSG Consumer Partners. The brand, which industry sources say is on track to do $200 million in retail sales for 2017, will receive support on product, retail and geographic expansion through the deal. Get all the details on the deal and read @_a_collins' interview with Kattan on WWD.com. Link in bio. (📷: @jgreenery) #wwdbeauty #wwdnews
Peruvian model @juanaburga_official – who is known for walking the runways of @rodarte, @viviennewestwood and @torybuch – is making the move to the big screen with drama “Los Últimos.” The film premiered in Argentina in November and arrives in the U.S. and Europe in 2018. On making the switch from modeling to acting, Burga told WWD: “It’s a completely different thing – a lot of people think it’s similar or try to connect things, especially like getting used to the camera or being looked at all the time or playing these different characrers, but film is a completely different story.” #wwdeye (📷: @jgreenery)
London’s newly opened @designmuseum will look back on the life and work of Azzedine Alaïa in a show that the designer helped to curate before he died of heart failure last month. The retrospective, which Alaïa had worked on with Mark Wilson, chief curator of the @groningermuseum, will look at the impact of his work worldwide. The show, “Azzedine Alaïa: The Couturier,” will run from May 10 to October 7. Read more about the exhibit on WWD.com #wwdnews #wwdfashion (📷: @zefashioninsider)