Retail shares ended their worst week of 2014 with a 1.5 percent decline today, with J.C. Penney Co. Inc.’s 9.6 percent contraction among the market’s weakest performers.
One day after a 3 percent decline marked its worst single day of the year, the S&P 500 Retailing Industry Group struggled back from steeper losses in morning trading but still closed off at 847.72, leaving it 4 percent below last Friday’s close and 9.8 percent below its final mark of 939.81 at the end of 2013.
The Dow Jones Industrial Average and S&P 500 fared considerably better with respective declines on the day of 0.9 percent, to 16,026.75, and 1 percent, to 1,815.69.
The Dow was off 2.4 percent for the week and is off 3.3 percent for the year to date, while the S&P declined 2.7 percent and sits 1.8 percent below its year-end mark of 2013.
While stocks weren’t moved by particularly disturbing news on the retail front, investors appeared to be absorbing the messages delivered Thursday, when the majority of a small sample of retailers reported declines in same-store sales last month and Family Dollar disclosed plans to close about 370 stores following weak sales.
Coldwater Creek Inc. saw its shares sag 31.6 percent to 13 cents after it filed for Chapter 11 bankruptcy protection and said it would liquidate its operations with little prospect of any recovery for equity holders.
Without the fuse of news, shares of Penney sagged 9.6 percent to $7.70, their sharpest decline since a 10.6 percent drop on Feb. 4, when the company provided an update on fourth-quarter performance that implied a decelerating sales trend in the weeks after Christmas.
Other retailers struggling for improvement in recent trends also registered sharp declines, including Aéropostale Inc., down 5.7 percent to $4.62; Sears Holdings Corp., 5.2 percent to $32.62 and Delia’s Inc., 5 percent to 76 cents.
Lands’ End Inc., spun off from Sears earlier in the week, was among a half-dozen equities tracked by WWD to manage gains, albeit a 0.1 percent increase to $26.01. Shares closed at $31.67 last Friday just prior to their official launch on the Nasdaq Monday.
The strongest performer in the WWD sample was Christopher & Banks Corp., up 1.6 percent to $6.30.
Europe’s major indices all continued on a downward slide to close the week with losses.
The DAX in Frankfurt fell the most, slipping 1.5 percent to 9,315.29, followed by the FTSE 100 in London, down 1.2 percent to 6,561.70. The CAC 40 in Paris and the FTSE MIB in Milan both ended the day down 1.1 percent, to 4,365.86 and 21,198.79 respectively.
So far this year, the FTSE MIB is up 11.8 percent and the CAC 40 ahead 1.6 percent, while the DAX and FTSE 100 are down 2.5 and and 2.8 percent, respectively.
Sports Direct suffered one of the largest declines of the day, dropping 4.8 percent to 7.71 pounds. The retailer continued to fall after its founder and executive deputy chairman Mike Ashley sold shares worth around 200 million pounds in the retailer earlier this week.
Other fashion and retail stocks in decline included a raft of online retailers: Boohoo.com, which slipped 5.1 percent to 51 pence; Asos.com, 3.2 percent to 43.76 pounds; Yoox, 2.4 percent to 24.59 euros, and Koovs, 1.7 percent to 1.77 pounds. Meanwhile, Next fell 2.1 percent to 64.05 pounds and French Connection fell 2.4 percent to 67 pence.
But a few stocks in the sector had increases by the end of the day. Burberry ended up 0.4 percent to 14.13 pounds, while Unilever’s shares listed in London rose 0.5 percent to 26.35 pounds, modest gains that still placed both stocks among London’s top five performers.
The pound traded for $1.68 against the U.S. dollar, while the euro went for $1.39.
In honor the @CFDA’s announcement of @iamnaomicampbell receiving the Fashion Icon Award at the 2018 #CFDAAwards, which will take place on June 4, here’s a #tbt of the supermodel on @michaelkors’ runway in 1991. #wwdfashion #wwdarchive (📷: George Chinsee)
“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.