The $700 billion bailout bill finally passed the House of Representatives today, albeit, with some changes and additions to the bill’s original form.  While the day did see a slight bump upward for retail stocks, the S&P Retail Index closed lower than it did yesterday, and overall the index is down 11.7% from a week ago (WWD - subscription required).

One of today’s biggest losers was big box, Dillard’s, which ended the day at $11.06 per share- a 8.9% drop.  I dread seeing the numbers this upcoming holiday season.

Just like the greater economy as a whole, retail is suffering from the current financial crisis.  After yesterday’s record drop, the S&P Retail index improved slightly, gaining 12 points.  Monday, the index dropped 6.7% after the House of Representatives failed to pass the bailout bill. (WWD, subscription required).

It’s going to continue to be a sticky road for retail for the next few months (or longer), I fear.  Concerned and cash-strapped consumers aren’t helping to push up the bottom line, either.

If the financial woes continue, and the U.S. Government can’t push some sort of aid package, then retail will really be hurt. The lack of available cash for credit companies may cause consumers’ credit lines to be shortened. If that happens, unless consumers have cash to pay for purchases, the “buy now, pay later” approach won’t work, because buyers will not have credit. No credit is a problem for retailers who depend on shoppers swiping to buy non-necessity items.

It could get very ugly for retail.

Fashion Week is well underway here in the Big Apple!  Renee Zellweger and a bevy of other starlets attended Carolina Herrera’s show this morning.

The weekend boasted a heaping of fashion’s finest.  Here’s the round-up for today’s official shows:

It’s that time of year again when Bryant Park fills with white tents, and we all turn our eyes to the fashions of the near future.   Mercedes-Benz Fashion Week kicks off tomorrow!  To view the Fashion Week Schedule of shows, click here.

Fashion Lawyer will be covering the shows, reviews and big news of Fashion Week, so be sure to tune in!  If you’re interested in reading about the hidden costs in producing a show in Bryant Park, click here to read an older post on the economics of a fashion show

I’m 5′ 11″, and in my skinniest, tiniest days back at around age 19, I was modeling a bit. I was a size 4. While I didn’t have an eating disorder, I would regularly pass out if I didn’t eat enough. I was much too thin to be heathly, and everyone around me knew it. Yet, the message I always got from agencies was, “you could really stand to lose about 10 pounds”. Ten pounds of what? Bone mass?

Unfortunately, as the Wall Street Journal reveals, the modeling world still wants ultra-skinny girls trotting down the runway. The article in the WSJ focuses on a a young model, Tatiana Stewart, who is 6′2″ and a size four. Guess what? Everyone inside the industry is encouraging her to drop down to a size 2.

Up to now, the United States has not taken a stand and put health regulations in to govern the fashion industry, as France has.  Ordinarily, I’m rather laissez-faire about these types of issues.  I think excessive government intervention isn’t always the right answer.  However, when on a constant and systematic basis an industry is putting human health at risk, I start to wonder if it is time for Uncle Same to step in.

What do you think?  Should the U.S. set safety and health standards to protect models?  As always, comments are welcome and appreciated!

Here’s a big shocker- retail sales fell short of projected expectations in July.  Ahem, poor economy, ahem.  Sorry; had to clear my throat.

Even retail super giant, Wal-Mart, came in with numbers lower than analysts had hoped.   Mass market retailers like Old Navy, Gap and Buckle suffered steep dips in same-store sales, with drops in the double digits.

It’s rough here in the States right now, and I don’t think the Autumn will offer much solace for retailers.

The New York State Labor Department announced yesterday that  an apparel factory in Queens, NY violated overtime and minimum wage laws. The factory, Jin Shun, located in Long Island City, created goods for big name brands like Banana Republic, Victoria’s Secret, Macy’s and the Gap.

 Workers were cheated out of over $5 million in wages.  Furthermore, employees often had to work long hours- in violation of overtime laws.  Many employees were forced to work everyday for weeks on end with no time off.

What’s worse is that the factory’s management gave out instructions, written in English and Mandarin (most of the factory’s 100 employees are Chinese immigrants) on how to dupe labor inspectors.State labor officials have said that the Queens factory was one of the worst sweatshops they have seen in years.

I guess top level execs at eBay finally have a cause for celebration.  Today a federal judge in the Southern District of New York ruled in favor of eBay in a suit brought by Tiffany & Co. 

In the case, Tiffany alleged claims of trademark infringement and dilution, false advertising and unfair competition for facilitating the sale of counterfeit goods.  The federal court in Manhattan did not buy into Tiffany’s allegations and instead sided with eBay. Ebay’s legal defense argued that since the online auction site is merely a middle man between buyers and sellers and because eBay never possesses the goods up for sale, that the company should not be held responsible for the sale of counterfeit Tiffany goods.  The judge also stated that it is Tiffany’s role to police the market for possible counterfeits.

Do you agree?  As always, comments are welcome and appreciated!

Moet Hennessey Louis Vuitton (”LVMH”) gained yet another legal victory over eBay today.  The Paris Court of Appeals confirmed last week’s decision from the Tribunal de Commerce, the lower Parisian court, which ordered eBay to stop allowing sellers to auction genuine LVMH brand perfumes.  Affected brands are: Parfums Christian Dior, Kenzo Parfums, Guerlain and Parfums Givenchy.

In last week’s decision, the Tribunal de Commerce ruled that if eBay did not cease allowing sellers to auction LVMH brand perfumes, that eBay would face a daily fine of 50,000 euros (about $79,000 U.S.).  The Appeals Court affirmed the levy of the injuctive fine and also smacked eBay with additional legal fees of over 10,000 euros (over $15,000 US).

Ebay is still in the process of appealing the overall $61 million damage award that the Tribunal de Commerce ordered the company to pay to LVMH.  The damage award covered both the sale of LVMH brand perfumes outside the normal retail channels and the sale of counterfeit Louis Vuitton merchandise on eBay’s acution website.