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.
EXCLUSIVE: @tomford is opening its first-ever beauty store. The boutique, which opens November 20 in London’s Covent Gardens, was designed with the over-the-top glam Ford is known for. Read the full story on WWD.com, link in bio. #wwdbeauty #wwdnews (📷: Simon Wagner) #TomFordBeauty
New York-based DJ @harleyvnewton threw a party to celebrate the holiday collection of her dress and pajama line @hvn at the Ladurée Beverly Hills. It Girls @katebosworth, @rashidajones and more joined in on the fun, which included cocktails, croque monsieur sandwiches and a photo booth. #wwdfashion (📷: Owen Kolasinski/BFA.com)
For the holidays, @Burberry partnered with 20-year-old artist @blondeymccoy on a series of three outdoor murals in downtown Manhattan. The murals are McCoy’s interpretation of a Christmas eve party, the idea of charity and the spirit of family. His third mural, pictured here, is the most personal. The image depicts McCoy’s grandparents and father in London’s Trafalgar Square in the Seventies. “My work often features lots of sentimental objects.” #wwdeye
For spring 2018, designers applied bold colors and cartoonish motifs on everything from sneakers and belts to key chains. See all the top men’s accessories trends on WWD.com. #wwdtrends (📷: George Chinsee; Prop Styling by @rnasti; Market Editor: @luiscampuzano)
The @dior-sponsored @guggenheim international gala pre-party has a history of drawing cool-girl musical acts to serenade the crowd –– and last night was no exception. @haimtheband performed songs both new and old, and lured a star-studded audience with the likes of Rebecca Hall, Kate Mara, Mamoudou Athie and more. #wwdeye (📷: @lexieblacklock)
In a partnership between the @metopera and the @englishnationalopera, “Marnie” was born. The opera, with costumes sponsored by @mrporterlive, is an adaptation of the 1961 thriller by Winston Graham. Arianne Phillips, who created the costumes, is no rookie: She’s styled Madonna for her tours and created costumes for a myriad of films in the past. Read WWD’s interview with Phillips, where she talks about her inspiration for the opera’s costumes on WWD.com #wwdfashion
@barneysnyc took a different approach to their holiday windows this year. Instead of Christmas decor, Barneys tapped @thehaasbrothers to tell a story of positivity, gratitude and inclusivity via heartwarming silliness and humor. “It’s about kids and it’s about coming together and being family and loving each other,” said Simon Haas. #wwdfashion (📷: @joshuascottphoto)
Beauty influencer @kandeejohnson makes her foray into hair care with a collaboration with @ogx_beauty — making it the first time that OGX has teamed up for a product creation. The collab includes shampoos and conditioners in three scents. At 39 and a mom, Johnson is a different profile than the emerging social media stars, but is considered one of the pioneers of the digital beauty influencer world. Read WWD’s interview with her on wwd.com, including the strangest beauty product she’s ever tried #wwdbeauty