NEW YORK — A mixed bag of earnings reports outside the retail sector last week spurred investors to sell shares and remain cautious even with a huge rally on Thursday.
As a result, the WWD Composite Stock Index continued its downward spiral after the prior week’s dramatic plunge, sliding 1.3 percent to close at 1,063.35 from 1,077.67.
The S&P 500 reflected the week’s roller-coaster ride, ending at 1,152.11, a slight increase of 0.81 percent from the prior week.
Of the companies reporting sales and earnings in the retail and fashion sectors, results were mixed.
Kenneth Cole Productions reported increased revenue and net income for its first quarter ended March 31. The company posted a 1.3 percent increase in net income to $7.49 million from $7.39 million in the year-ago quarter. First-quarter earnings per diluted share were 37 cents, which was consistent with expectations. Although comparable store sales declined 5.8 percent from the same quarter last year, net revenue jumped 6.1 percent to $129.9 million from $122.4 million last year.
Kenneth Cole expects to meet second-quarter forecasts of 38 cents a share, with full-year EPS between $2 and $2.06. Following the quarterly report, shares of Kenneth Cole rose 3.2 percent to $30.15 at Friday’s close.
Meanwhile, Bebe Stores delivered third-quarter earnings that more than doubled to $11.1 million from $5.5 million a year ago on revenue that rose to $116.9 million from $83.6 million. The Brisbane, Calif., women’s apparel retailer reported earnings of 18 cents a share, lower than the 21 cents a share expected by analysts. In turn, shares of Bebe dropped 8.5 percent to close at $32.51 on Friday.
In the warehouse club channel, Costco Wholesale warned that the company expected to miss third- and fourth-quarter earnings estimates because of gross margin erosion and high gasoline prices. Costco shares tumbled 8.7 percent to close at $40.17 on Friday.
Costco’s gloomy forecast affected Wal-Mart, already hurting from a Federal grand jury investigation regarding alleged misspending within the company. Shares for the megaretailer dropped 2 percent to $46.81.Concerns over market volatility and rising gasoline prices is likely to continue to make investors wary of stocks, said analysts.
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye