Retail stocks fell on Wall Street today as investors picked through the minutes of last month’s Federal Reserve meeting and found some participants contemplating a tighter monetary policy — which could slow economic growth.
The S&P 500 Retailing Industry Group fell 1.3 percent, or 9.47 points, to 699.43, as the Dow Jones Industrial Average declined 0.8 percent, or 108.13, to 13,927.54. Contributing to the retail index’s decline were Abercrombie & Fitch Co., down 2.4 percent to $50.84; Nordstrom Inc., 2.3 percent to $55.15; Macy's Inc., 2.3 percent to $39.51, and Tiffany & Co., 1.9 percent to $64.40.
Shares of Michael Kors Holdings Ltd. also fell, dropping 5.2percent to $61.50, after the company said late Tuesday that early investors planned to sell another 25 million Kors shares on the open market. The news came just after the stock hit an all-time high of $64.84.
Minutes from the last Fed meeting on monetary policy showed, “a number of participants stated that an ongoing evaluation of the efficacy, costs, and risks of asset purchases might well lead the committee to taper or end its [debt] purchases before it judged that a substantial improvement in the outlook for the labor market had occurred.”
Others at the meeting argued the Fed should continue to buy back debt.
The central bank, led by chairman Ben S. Bernanke, has been buying debt to keep interest rates low in hopes of growing the economy fast enough to bring down unemployment, currently at 7.9 percent.
In Europe, stock markets were mostly down. The FTSE MIB in Milan retreated 0.8 percent to 16,527.50 as the CAC 40 in Paris was down 0.7 percent to 3,709.88 and the DAX in Frankfurt fell 0.3 percent to 7,728.90.
The FTSE 100 in London edged up 0.3 percent to 6,395.37.
Retail and luxury stocks were also mixed, with the day’s biggest gainers including Hugo Boss, up 2.4 percent to 89.47 euros; Luxottica Group, 1.5 percent to 34.89 euros, and Yoox, 2.3 percent to 14.47 euros.
Among the stocks that lost the most ground were Metro AG, down 1.3 percent to 24.00 euros; Inditex, 1.8 percent to 100.65 euros, and Asos.com, 1.6 percent to 27.85 pounds. The euro traded at $1.34 while the pound went for $1.55 and the Swiss franc traded at $1.08.
For its next men’s wear collection, @roberto_cavalli will show as a special guest at #PittiUomo, running from June 12-15. The brand, which has Florence in its roots, will relaunch its men’s wear collection, which will be presented separately from women’s wear for the first time since Paul Surridge was appointed creative director in May. #wwdnews #wwdfashion (📷: @aitorrosasphoto)
“I was making the guacamole when my scout saw me,” says model @stuckinteenage on being discovered just six months ago while working at @chipotlemexicangrill. Since then Williams has signed with @dnamodels, walked in her first show at @calvinklein and landed on the cover of @vogueitalia – a high point of any model’s career. To read @lisajlockwood’s full interview with the model on her experiences thus far, head to WWD.com – link in bio. (📷: George Chinsee)
“I love the idea of dialogue, period. It’s where I’ve always gotten my inspiration from: hearing other women speak, their journeys and their paths,” said @hereisgina, who delivered the keynote speech during @sxsw for @createcultivate in partnership with @fossil. For her two panels, Rodriguez chose female empowering, female-led and female entrepreneurs to focus on. Head to WWD.com to read more about her thoughts on Time’s Up, growing up in a family of women and why we “need a girls’ club.” #wwdeye #sxsw (📷: @jgreenery)
Leading luxury brand are shaking things up to keep up with streetwear. Case in point: the arrival of @mrkimjones as artistic director of @diorhomme. Jones, who succeeds @Kris_Van_Assche, is seen as one of the handful of designers who can actually straddle the luxury and streetwear worlds — which could lead to even more changes at established brands. What could this mean for the rest of the menswear landscape? Head to WWD.com to find out what experts predict #wwdfashion (📷: @franckmura)
“It’s like buying groceries. You’re going to buy the best mango, the best mozzarella, the best things. You have to, or others are going to take it all,” said @gabrielahearst on why she uses only the finest fabrics. Last week, Hearst received her first @cfda nomination for Womenswear Designer of the Year, and earlier this month she opened a permanent showroom in Paris. To read @jessiredale’s interview with the designer and find out why this is shaping up to be a big year for her, head to WWD.com. #wwdfashion (📷: @francoisgoize)
“It’s an interesting thing, playing a younger version of your mother. It’s an interesting concept. I adore my mom and love her in every capacity, but it was just something that had never crossed my mind,” says @anniemstarke on playing a young Joan Castleman in “The Wife.” The same role will be played by her mother Glenn Close. Read more about her growing up in the film industry as the daughter of producer John H. Starke and Close and what she has planned for the future #wwdeye (📷: @nataliamantini)
@asics is launching a new streetwear sneaker inspired by its latest ambassador, @steveaoki. The Hyper-Kenzen x Aoki, which will launch at @footlocker stores exclusively tomorrow, is a slip-on style that incorporates the brand’s proprietary Gel technology through beads integrated into the midsole for comfort and endurance. Read the full story on WWD.com.