Retail stocks headed into the final week of the fiscal second quarter on a high note.
Despite a 0.3 percent drop on Friday, the S&P Retail Index finished last week with a 4.7 percent gain, coming to rest at 351.39 following a 2.7 percent gain on Thursday. The upswing gave the index a 13.5 percent increase over the last two weeks and translated into the fourth week of advances in the past five. For the year, it’s up 25.8 percent.
The retail index once again outperformed the three major indices, all of which enjoyed strong gains. A 4 percent increase for the Dow Jones Industrial Average gave it an 11.6 percent gain for the two-week period, its best performance since 2000, two years before the resetting of the retail index. After scaling the 9,000 mark on Thursday, the Dow came within 8 points of sinking below it on Friday but rallied in the afternoon to close at 9,093.24.
The S&P 500 was up 4.1 percent for the week, to 979.26, and the Nasdaq Composite was ahead 4.2 percent to 1,965.96. The two-week gains came to 11.4 percent and 12 percent, respectively.
Stocks were buoyed throughout the week by second-quarter profit results from technology firms. While profits were uneven and often down, they generally exceeded expectations and often were accompanied by more upbeat guidance for future quarters, convincing investors, including those focused on the retail sector, that the equity markets still had considerable upside potential.
Their optimism will be tested this week, when apparel and beauty firms, including Coach Inc., Jones Apparel Group Inc. and Revlon Inc., begin reporting quarterly earnings results and The Conference Board chimes in on Tuesday with its monthly report on consumer confidence.
Retailers begin reporting their results for the May-to-July quarter next month. As has been the case in the tech sector, upside surprises are expected to be derived from cost controls rather than revenue expansion.
Of the 175 firms whose stocks are tracked by WWD, 150 enjoyed increases in their shares last week, four were unchanged and 21 experienced declines.
@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