Weak second-quarter results hit Quiksilver Inc. hard today, pushing its stock down 41.1 percent to $3.41 in a modestly down market.
Late Monday, the company offered a disappointing report on the quarter, revealing a larger-than-expected loss on lower-than-expected revenues. That led to downgrades from both Stifel Nicolaus and Monness Crespi and left the stock at with its lowest close since Nov. 2, 2012.
Two other southern California firms, both retailers which have recently reported difficult quarters, saw their stocks lose significant ground as well. The Wet Seal Inc. shares were off 4.2 percent to 85 cents and Pacific Sunwear of California Inc. surrendered 3.8 percent to close at $2.28.
Overall, retail stocks were down modestly. The S&P 500 Retailing Industry Group slipped 0.1 percent to 876.07 after dipping less than 0.1 percent on Monday. However, the International Council of Shopping Centers-Goldman Sachs retail sales index had some good news for merchants. According to the index, sales for the week ended Saturday rose 3.1 percent on a year-on-year basis — the second-strongest increase of the last 12 months.
In the broader market, the Dow Jones Industrial Average lost 0.1 percent, closing at 16,722.34, while the S&P 500 came closest to the breakeven point, slipping less than 0.1 percent to 1,924.24. The declines for the Dow and the S&P ended a three-session winning streak.
Among fashion, retail and beauty firms whose stocks are monitored by WWD, the largest increase came from G-III Apparel Group Ltd., up 8.7 percent to $82.54, after it reported first-quarter profits far in excess of consensus estimates. Express Inc. shares were up 3.8 percent to $13.51 while Tumi Holdings Inc.’s stock rose 1.9 percent to $18.52.
European markets were down at the close of trading, with Milan’s FTSE MIB off the most with a 0.6 percent decline to 21,656.65.
The FTSE 100 in London retreated 0.4 percent to 6,836.30, while the CAC 40 in Paris and the DAX in Frankfurt were both down 0.3 percent, to 4,503.69 and 9,919.74, respectively.
Retail and luxury stocks were mostly down, with the day’s biggest declines coming from Aeffe, off 2.1 percent to 1.16 euros; Brunello Cucinelli, 2.1 percent to 18.40 euros; French Connection Group, 1.5 percent to 68 pence, and Safilo Group, 2.4 percent to 16.67 euros.
Debenhams managed to buck the trend and advanced 1.3 percent to 77 pence.
The euro traded at $1.36 against the U.S. dollar, while the pound fetched $1.67 and the Swiss franc equaled $1.11.
@margotrobbie steps out onto the red carpet wearing @miumiu. The actress is nominated for “Outstanding Performance by a Female Actor in a Leading Role” in “I, Tonya” at the #SagAwards. (📷: Stewart Cook) #wwdfashion
For @massimogiorgetti of @msgm, the Nineties are his favorite decade. “They had a huge impact on my personal growth. What I like of the Nineties is that they are not so precise in terms of style as other decades…there was actually a bit of everything,” he said. As seen on MSGM’s Spring 2018 show: tie-dye and a bit of grunge, two styles that are synonymous with the decade #wwdfashion #wwddecades (📷: @kukukuba)
Breaking News: @hedislimane joins @celine as its new artistic, creative and image director. One of fashion’s preeminent image-makers and trendsetters, Slimane is to join the LVMH brand on Feb. 1 and unveil his first fashion proposition for men and women next September during Paris Fashion Week. It marks a major homecoming for Slimane, who cemented his reputation – and influenced men’s tailoring for more than a decade – as the designer of Dior Homme between 2000 and 2007. He went on to reinvent and ignite the house of Yves Saint Laurent, which he rechristened Saint Laurent, between 2012 and 2016 – all the while maintaining a close relationship with the Arnault family, which controls LVMH and Dior. Read the full exclusive story on WWD.com. Link in bio. #wwdnews #wwdfashion
“Personally I believe the Eighties have been the richest and more vivacious period for international fashion,” Giorgio Armani said when asked what his favorite decade of fashion is. It was a moment of disruption and experimentation and only thinking back to the first years of that decade is always an emotion for me, for what they have meant to me and my work.” The influence is clear in @giorgioarmani spring 2018 collection, pictured here, which was full of bright colors and unexpected prints. Read more about which decades designers loved most on WWD.com #wwdfashion #wwddecades (📷: @aitorrosasphoto)
For Lady Gaga’s only Italian show on her “Joanne World Tour,” the singer wore a range of @versace_official outfits. The standout piece: this custom-made bodysuit inspired by the brand’s spring 2018 collection. #wwdfashion (RG: @ladygaga)
@_camillaruth_ is expanding on the wellness-craze concept with @westbourne – a new NYC restaurant that’s both a healthy-minded café as well as a business that gives back to the community. Marcus works with the Robin Hood foundation to give back to The Door, a non-profit providing youth development services, and also hires employees through The Door. Read our full interview with Marcus on giving back through food on WWD.com. #wwdeye (📷: @lexieblacklock)