Aggressive selling in the final hour of trading dropped U.S. retail stocks 1.2 percent Wednesday and led the Dow Jones Industrial Average to its first sub-10,000 close since Feb. 8.
Prior to the stormy finish on Wall Street, global markets recovered from severe declines the day before, when saber rattling on the Korean Peninsula and Europe’s debt problems spooked investors.
After dwelling in positive territory much of the day, the S&P Retail Index in the last hour of trading sold off heavily, ending the day down 5.36 points, or 1.2 percent, at 435.24. Since coming within a fraction of the 500 mark on April 26, it’s pulled back 12.9 percent.
While the Dow had slid below 10,000 on two of the three previous trading days, it had managed to close out both sessions above the five-digit line. But heavy selling on high volume in Wednesday’s closing minutes rendered that an impossibility. The Feb. 8 close, at 9,908.39, was the only other under-10,000 closing number of the year before Wednesday.
Among the 172 fashion, beauty and retail firms tracked by WWD, none had a larger decline than American Eagle Outfitters Inc., whose shares slid 16.6 percent to $12.82 after the firm reported a loss on par with analysts’ expectations but projected second-quarter earnings below Wall Street expectations. Right behind American Eagle was Zale Corp., with a 6 percent decline in shares to $2.52 after it reported a smaller-than-expected third-quarter loss. (For more on retail earnings, see page 14.)
Unlike their counterparts in the U.S., markets in Asia and Europe rebounded from Tuesday’s decline. The Hang Seng Index rose 1.1 percent to 19,196.45 in Hong Kong and the Nikkei 225 advanced 0.7 percent to 9,522.66 in Tokyo. The CAC 40 rose 2.3 percent to 3,408.59 in Paris, the FTSE 100 advanced 2 percent at 5,038.08 in London and the DAX moved ahead 1.6 percent to 5,758.02 in Frankfurt.
The general rebound was aided by a rosier outlook from the Organization for Economic Co-operation and Development, which said the collective GDP of its 31 member countries would rise 2.7 percent this year, up from the 1.9 percent the group predicted in November.
But the good news came with a warning.
“This is a critical time for the world economy,” said Angel Gurría, the group’s secretary-general. “Many OECD countries need to reconcile support to a still fragile recovery with the need to move to a more sustainable fiscal path. We also need to take into account the international spill-overs of domestic policies.”
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
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For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)