The retail sector has yet to post a gain on Wall Street in 2014.
The S&P 500 Retailing Industry Group surrendered 0.8 percent to end today’s session at 927 — the sector's third-straight decline. That performance was weaker than the 0.3 percent shed by both the Dow Jones Industrial Average and the S&P 500, which closed at 16,425.10 and 1,826.77, respectively.
The teen sector continued to feel much of the pressure. Aéropostale Inc. was down 1.9 percent to $8.99 and Abercrombie & Fitch Co. off 0.6 percent to $32.59 while Ascena Retail Group Inc., owners of the Justice tween chain, traded down 0.2 percent to $22.54. The Buckle Inc. and Urban Outfitters Inc. both declined 0.1 percent, to $52.36 and $37.96, respectively, while American Eagle Outfitters rose 0.5 percent, to $15.05, and Pacific Sunwear of California Inc. was up 0.3 percent to $3.65. The Wet Seal Inc. posted one of the strongest gains of the day in the retail world, rising 2.2 percent to $2.77.
Brean Capital analyst Eric Beder lowered his projections for American Eagle, Abercrombie, Aéropostale and Wet Seal following what he described as a “disastrous year for the teen players….with the holiday season capping off the misery.” Beder has a “buy” rating on American Eagle, Abercrombie and Wet Seal and a “hold” rating on Aéropostale.
An abbreviated roster of U.S.-based retailers, including Buckle and Zumiez Inc., will report sales results for December on Thursday. A number of retailers who no longer report same-store sales on a monthly basis are expected to provide updates on holiday sales results throughout the week.
Shares of both The Men’s Wearhouse Inc. and Jos. A. Bank Clothiers Inc. rose as the battle between the company's entered a new phase. Men's Wearhouse raised its offer to buy Bank to $57.50 a share, from $55, bypassing Bank’s board by going directly its shareholders. Shares of Bank were up 4.5 percent to $56.87 while Men’s Wearhouse’s rose 2.2 percent to $51.68. Bank said it would consider the elevated offer and urged shareholders to take no action until it made a recommendation to shareholders on or before Jan. 17.
In Europe, markets marked a day of mixed trading.
The CAC 40 in Paris ended down 0.5 percent to 4,227.54, while the DAX in Frankfurt slipped 0.1 percent to 9,428.00. The FTSE 100 in London was flat at 6,730.73, while the FTSE MIB in Milan managed to gain 0.6 percent to 19,233.74.
Europe’s market might have taken their cue from the Purchasing Managers’ Index data from China, which showed that growth in the country's service sector is slowing.
Among those on the rise were Geox, which gained 9.5 percent to 3.15 euros; Safilo Group, up 2.1 percent to 18.15 euros, Mulberry, which rose 1.2 percent to 9.40 pounds, and Hennes & Mauritz, up 0.5 percent to 297.80 Swedish krona.
Those that fell included a number of British retailers, after the sector enjoyed increases last week following encouraging reports on holiday sales.
Asos.com was down 1.2 percent to 66.71 pounds, Marks & Spencer slipped 0.8 percent to 4.40 pounds and Debenhams was down 1.1 percent to 77 pence.
The euro traded for $1.36 against the U.S. dollar, while the pound went for $1.64 and the Swedish krona for 15 cents.
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)
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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