Red-hot equity markets on both sides of the Atlantic took a break today as major U.S. and European indices fell.
The S&P 500 Retailing Industry Group was down for the second straight day as it declined 0.3 percent to 916.64. The Dow Jones Industrial Average was off 0.1 percent to 15,967.03 and, for the second consecutive session, broke the 16,000 barrier but failed to close above it. The S&P 500 was down 0.2 percent to 1,787.87 but failed to hit the 1,800 level, as it had on Monday.
The day’s few fashion gainers were led by Aéropostale Inc., shares of which rose 3.9 percent to $9.51. After the markets closed, Hirzel Capital Management LLC, a Dallas-based investment fund led by Zac Hirzel, said in a Securities and Exchange Commission filing that it had acquired about 4.8 million shares of the retailer, constituting a 6 percent stake, for $44.6 million.
In the filing, it said it made the purchases for investment purposes and not to acquire control of the specialty store group. However, it expects to “have discussions with management” based on its belief that Aéropostale’s shares are “undervalued and represented an attractive investment opportunity.”
The steepest losses among retail, fashion and beauty firms tracked by WWD were in the specialty store sector, led by Delia’s Inc.’s 8.8 percent drop to $1.45, Coldwater Creek Inc.’s 7.4 percent decline to 93 cents and Cache Inc.’s 5.8 percent fall to $5.01.
American Apparel Inc. ended the day down 5.7 percent to $1.15. Moody’s Investors Service downgraded American Apparel's credit rating, already in noninvestment territory, one notch to “Caa2” following disclosure that the company had failed to comply with the performance requirements of its revolving loan facility with Capital One and required a waiver to avoid a default. The retailer doesn’t expect to be in compliance with fixed charge coverage and maximum leverage ratios of the agreement until the fourth quarter of 2014, at the earliest.
European markets ended the day down. The FTSE MIB fell the furthest, by 1.8 percent to 18,766.78, while the CAC 40 dropped 1.1 percent to 4,272.29, and both London’s FTSE 100 and Frankfurt’s DAX lost 0.4 percent, to 6,698.01 and 9,193.29, respectively.
The euro traded at $1.35 against the dollar and the pound was worth $1.61.
Retail and luxury stocks were mostly down, with the day’s biggest fallers including Inditex and Mulberry, which both lost 2.2 percent to 115.75 euros and 10.49 pounds, respectively. Ferragamo dropped 2.4 percent to 25.21 euros.
Among the shares gaining ground were Hermès and Safilo, which both rose 1.9 percent, to 252.65 euros and 17.28 euros, respectively. Gemfields jumped 8.1 percent to 0.39 pounds after strong results from its rough emerald and beryl auction in Lusaka.
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