NEW YORK — Oil prices continued to wreak havoc on retail and vendor shares last week, with oil topping $56 a barrel in trading on Friday. The Neiman Marcus Group being put on the auction block, and speculation of Sears, Roebuck & Co. selling Lands’ End, only added to the uncertainty.
With little positive news to bolster confidence the WWD Composite Stock Index declined 1.6 percent over the week to close at 1,141.98. The S&P 500 fared a bit better, giving up 0.9 percent to close at 1,189.61.
However, both the WWD Index and the S&P have shown improvements for the year-to-date period. Since Jan. 2, the WWD Index has risen 2.2 percent while the S&P advanced 7.3 percent.
According to Sanford C. Bernstein & Co. analyst Emme Kozloff, much of this improvement can be attributed to tax cuts, early tax refunds and low interest rates. Unfortunately, Kozloff believes those stimuli have run their course and that there are warnings that the retail sector could experience declines for the remainder of the year.
On the positive side, said Kozloff in a research report released on Thursday, wages and growth are still on the rise. “The current level of [approximately] 5 percent wage growth and [approximately] 1.7 percent payroll growth should allow for consumer spending growth in the 4 percent to 5 percent range this year,” said Kozloff. However, rising interest rates and gas prices could hinder low-income consumers.
Kozloff also believes strong comparable-store sales figures reported over the last several months have been the result of early tax rebates. “Refunds are disproportionately skewed toward early filers and lower-income earners,” said Kozloff, who expects the influx from rebates to have run their course by the end of the second quarter.
“With rising rates, high gas prices and difficult comparisons, we remain neutral to moderately negative in our outlook for the sector in fiscal 2005,” concluded Kozloff.
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@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)