Shares of American Eagle Outfitters Inc. plunged on Friday, reaching the lowest level in six years after the teen retailer was downgraded on news that Susan P. McGalla, president and chief merchandising officer, will not renew her contract with the company.
Coming off Thursday's stock meltdown, most retail shares continued to slide and the Dow Jones Industrial Average almost reached bear market territory, down just under 20 percent from its October 2007 high. The S&P Retail Index fell 0.5 percent to 359.56. The Dow dropped 0.9 percent to 11,346.51 and the broader S&P 500 declined 0.4 percent to 1,278.38.
American Eagle Outfitters was among the New York Stock Exchange's biggest decliners, plunging 14.4 percent to $13.53. The previous 52-week low was $15.45. The retailer was downgraded by Oppenheimer to "perform" from "outperform." In a research note, Roxanne Meyer, retail analyst at the firm, cited McGalla's departure, fashion misses and the weak economy as the catalysts for the downgrade.
McGalla's contract expires on Jan. 31, 2009. The company will conduct a search for a new chief merchandising officer.
Macy's Inc. and Christopher & Banks Corp. reached 52-week lows in intraday trading. Macy's fell to $18.94 before recovering to gain 0.3 percent to $19.53. Christopher & Banks reached $6.74 and closed at $7, down 20.6 percent. The previous 52-week low was $7.65. The company on Thursday reported a weak second-quarter earnings outlook.
J. Crew Group dropped 2 percent to $32.67, American Apparel Inc. fell 6.6 percent to $6.35 and Guess Inc. dropped 2.8 percent to $37.75.
Women's retailers were down, as Chico's FAS Inc. fell 1.2 percent to $5.69, The Talbots Inc. sank 4 percent to $12.09 and Coldwater Creek Inc. declined 6.1 percent to $5.43.
Among high-end retailers, Saks Inc. declined 0.5 percent to $11.45, and Nordstrom Inc. decreased 1.8 percent to $31.07.
On the upside, J.C. Penney Co. Inc. increased 2.4 percent to $36.83, Kohl's Corp. grew 2.1 percent to $41.38 and Sears Holdings Corp. gained 4.5 percent to $77.73.
In the men's sector, Casual Male Retail Group plunged 9.1 percent to $3.49, reaching its lowest point since March 2003.
@fearofgod and @maxfieldla have teamed up on a pop-up installation. The store, located in the gallery space across from Maxfield’s Melrose Ave location, is the site of the brand’s House of God pop-up in which Fear of God founder @jerrylorenzo has created a church-inspired installation. A dozen vintage church pews sit in front of an LED screen playing 90s gospel singers in an effort to re-create an environment akin to a Southern Baptist Church, Lorenzo explained. Read more about the pop-up on WWD.com #wwdfashion (📷: Jennifer Johnson)
Known for his sleek, sophisticated American glamour, Norman Norell is the subject of an upcoming exhibition at @fitnyc. “Norell: Dean of American Fashion,” which runs from February 9 through April 14, will feature approximately 100 ensembles and accessories. His best work is exemplified by the designer’s glittering “mermaid” gowns frosted with thousands of hand-sewn sequins – like the one pictured. (📷: William Helburn) #wwdfashion
For pre-fall 2018, @balmain didn’t let go of the glitz. A crystal embroidered baseball jacket priced at around $40,000 hangs in the “couture” section of the brand’s first men’s pre-collection. Sporting the words “Balmain Army” across the back, the item took around two months to make. “When it was completed, it was like Christmas, it was like, ‘It’s done, it’s exactly what I wanted,’” said Balmain’s creative director @olivier_rousteing during a tour of the collection in a Paris showroom on Monday. #wwdfashion
Eighty degree temperatures and outdoor installations at the annual Art Basel Miami Beach called for bright, elevated beachwear. See more street style pictures on WWD.com. #theyarewearing #ABMB (📷: @lifeinreverie)
Following September’s emotional tribute to her brother Gianni, Donatella Versace wanted to bring the spring show’s deep sense of intimacy to her @versace_official pre-fall collection. Donatella found inspiration in Versace Palazzo in Milan and from Gianni’s opulent apartment. Archival patterns and new motifs were splashed on silk shirtdresses and fitted jersey frocks. See the rest of the photos on WWD.com. #wwdfashion
Demna Gvasalia continues to shake up the Paris fashion calendar — and experiment with new runway timetables for his @vetements_official brand. WWD has learned that Vetements plans to stage its next coed show for the fall 2018 season on January 19 during Men’s Fashion Week in the French capital. Details about the timing and venue have not been confirmed — stay tuned on WWD.com to catch the latest. #wwdnews (📷: @giovanni_giannoni_photo)
@zacposen's go-to holiday gift? Cookies! "I'll usually bake cookies and send them as a gift," said the designer, who recently released his cookbook "Cooking With Zac: Recipes from Rustic to Refined." Get the recipe for his Brown Butter-Chocolate Chip Cookies via link in bio 🍪🍪🍪 #wwdeye #cookingwithzac
For @monsemaison’s pre-fall 2018 collection, Fernando Garcia and Laura Kim honed in on the brand’s many signatures — men’s wear, which was tweaked and feminized through deconstruction, proportion play and lots of bare shoulders. See the rest of the photos on WWD.com #wwdfashion (📷: George Chinese)
On Friday night, @yohjiyamamotoofficial received the Design for Asia Lifetime Achievement Award in Hong Kong. The 75-year-old designer has been celebrated for many years and is best known for his dark and avant-garde tailoring. “In my long career, in design, architecture, [I’ve been to] so many parties, this is the very first time that I have such a warm feeling, I really appreciate this,” Yamamoto said. #wwdfashion (📷: @dominiquemaitre)