A downgrade from Morgan Stanley pressured Kohl’s Corp.'s stock today, helping to pull down retail shares on what was a modestly positive day for Wall Street.
The S&P 500 Retailing Industry Group fell 0.9 percent, or 6.34 points, to 710.94, as the Dow Jones Industrial Average inched up 3.76 points to 14,455.82.
Shares of Kohl’s tumbled 4.1 percent to $46.56. Kimberly Greenberger, an analyst at Morgan Stanley, downgraded Kohl’s to underweight from equal-weight given “macro headwinds” facing the company, including “a tough economic setup and higher payroll taxes.”
Greenberger said Kohl’s had “a dearth of product newness and few desirable brands,” especially in the centercore of its stores.
Also losing ground were Chico's FAS Inc., down 3.7 percent to $17.20; Express Inc., 3.6 percent to $17.77; Under Armour Inc., 3.5 percent to $48.48; Michael Kors Holdings Ltd., 3.4 percent to $56.15, and Lululemon Athletica Inc., 2.8 percent to $64.08.
Lululemon said late Monday that it was expecting a shortage in its black Luon pants, which it deemed to be too revealing.
“We have determined that certain shipments of product received from our factories and available in store from March 1, 2013 do not meet our technical specifications,” the company said. “The ingredients, weight and longevity qualities of the pants remain the same but the coverage does not, resulting in a level of sheerness in some of our women's black Luon bottoms that falls short of our very high standards.”
The company pulled the styles from its stores, removing about 17 percent of all its women’s bottoms.
In Europe, markets continued to be riled by troubles in Cyprus.
After the market closed, Cyprus’ parliament rejected the proposed 10 billion euro, or $12.9 billion, bailout that would have imposed a levy on individuals’ savings accounts, leaving the future of the country’s banking sector in doubt.
It won't be clear what impact that decision will have on the market until Wednesday. The FTSE MIB in Milan closed down 1.6 percent to 15,670.56, followed by the CAC 40 in Paris, which sank 1.3 percent to 3,775.75. The DAX in Frankfurt retreated 0.8 percent to 7,947.79 and the FTSE 100 in London was down 0.3 percent to 6,441.32.
The euro traded at $1.29 against the dollar while the pound traded at $1.51 and the Swiss franc fetched $1.06.
Most retail and luxury stocks lost ground, including Swatch Group, down 3.2 percent to 93.20 Swiss francs; Yoox, 1.9 percent to 14.48 euros, and Compagnie Financière Richemont SA, 4.3 percent to 76.10 Swiss francs.
The exceptions included Metro AG, which gained 5.4 percent to 22.94 euros, and Brunello Cucinelli, up 1.7 percent to 17.29 euros.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast