U.S. retail stocks suffered their worst session of the new year today as investors continued to wrestle with ominous signs about retailers’ fourth-quarter profits.
The S&P 500 Retailing Industry Group dropped 1.7 percent to 915.55, putting the retail index 2.6 percent below the 939.80 mark at which it closed 2013.
The Dow Jones Industrial Average was off 1.1 percent, to 16,257.94, while the S&P 500 gave up 1.3 percent to 1,819.20.
Investors were troubled by reduced fourth-quarter profit guidance from companies including Lululemon Athletica Inc., Ascena Retail Group Inc., Stage Stores Inc. and Express Inc., all of which presented at the ICR Xchange in Orlando Monday or will present on Tuesday.
Lululemon’s shares fell the most of all fashion, retail and beauty issues tracked by WWD, descending 16.6 percent to $49.70. Ascena shares were off 7.2 percent to $20.36, Stage pulled back 5.8 percent to $19.89 and Express trended down 4.6 percent to $18.15.
The Bon-Ton Stores Inc., which said on Friday that it might suffer a loss for the full year following difficult weather conditions last month, saw its shares descend 13.5 percent to $13.41.
Among those headed the other direction were New York & Co. Inc. and Christopher & Banks Corp., which rose 5.2 percent and 4.9 percent, respectively, to $4.62 and $7.77. New York & Co. reported a 1 percent increase in same-store sales for November and December and narrowed its EPS guidance to the upper half of its previous projection. Christopher & Banks said its same-store sales would be flat to slightly ahead for the quarter but that a decrease in promotions would allow it to increase its gross margin percentage more than initially expected.
The ongoing battle between The Men’s Wearhouse Inc. and Jos. A. Bank Clothiers Inc. intensified as Eminence Capital, owners of shares of both companies, backed MW’s most recent offer to buy Jos. A. Bank for $1.61 billion. Eminence sued Bank in Delaware state court to prevent the retailer from making an acquisition that could complicate a possible transaction. Shares of Bank rose 0.7 percent to $56.41 while Men’s Wearhouse’s were down 1.4 percent to $50.39.
Europe’s markets all made gains for the day.
The FTSE MIB in Milan rose the most, climbing 0.7 percent to 19,697.25, followed by the DAX in Frankfurt, which rose 0.4 percent to 9,510.17. The CAC 40 in Paris gained 0.3 percent to 4,263.27, as did the FTSE 100 in London, rising 0.3 percent to 6,757.15.
Banking stocks continued to lead the rises during the day, with Commerzbank AG and Deutsche Bank AG among Frankfurt’s top performers along with Royal Bank of Scotland and Barclays in London. The rises followed a relaxing of regulations concerning bank’s leverage ratios in a ruling from the Basel Committee for Banking Supervision Sunday.
It was a mixed day for fashion, luxury and retail stocks. Those that managed to rise included Aeffe, up 3.8 percent to 0.87 euros; Safilo Group, which rose 3.5 percent to 18.69 euros, and Metro, which gained 2.6 percent to 35.85 euros.
Metro’s shares rose even after the firm said its sales fell 3.3 percent to 18.7 billion euros, or $25.45 billion, during the three months ended Dec. 31.
Meanwhile, Debenhams ended the day up 5 percent to 85 pence after the department store said that activewear retailer Sports Direct had taken a 4.6 percent stake in the business.
Those in the sector that fell included Hugo Boss, down 0.9 percent to 97.53 euros; Hermès, which slipped 0.9 percent to 247.25 euros, and Tod’s, which fell 0.5 percent to 110.10 euros.
The euro traded for $1.37 against the U.S. dollar, while the pound traded for $1.65.
@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 (📷: Dominique Maître)
@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
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
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)