Retail stocks pulled back a full 1 percent as a stream of weak first-quarter earnings results added to concern about consumer spending.
The S&P 500 Retailing Industry Group finished the day at 844.82 and suffered deeper losses than the Dow Jones Industrial Average, off 0.8 percent to 16,374.31, and the S&P 500, down 0.7 percent to 1,872.83.
Among U.S.-based retail stocks tracked by WWD, the four largest declines came from companies that had disappointed Wall Street with financial results within the last 24 hours. Dick’s Sporting Goods Inc. lost the most ground, selling off 18 percent to close at $43.60 after it reduced its full-year guidance in the wake of a first quarter in which earnings were up but below consensus estimates because of weakness in its golf and hunting divisions.
After reporting lower-than-expected first-quarter earnings late Monday as its namesake brand continued to struggle, shares of Urban Outfitters Inc. dropped 8.8 percent, to $32.98, for the second biggest decline in the WWD retail sample. Stage Stores Inc.’s losses widened, prompting an 8.3 percent decline in shares to $17.80, and The TJX Cos. Inc. saw its shares recede 7.6 percent to $53.95 after a rare earnings miss accompanied by a 1 percent same-store sales advance, below analysts' expectations.
Among a quartet of fashion, retail and apparel shares with gains, the leader was Cache Inc., up 6.6 percent to $1.78; followed by Amazon.com Inc., up 1.5 percent to $301.19; Aéropostale Inc., up 0.9 percent to $4.54, and The Procter & Gamble Co., up 0.4 percent to $80.23.
The U.S. results followed a generally down day in Europe, despite a 0.3 percent advance to 20,387.07 by the FTSE MIB in Milan. The FTSE 100 in London lost the most ground, sinking 0.6 percent to 6,802.00, followed by the CAC 40 in Paris, down 0.4 percent to 4,452.35, and the DAX in Frankfurt, off 0.2 percent to 9,639.08.
Those with gains included Italian clothing manufacturer Aeffe, which spiked 11.4 percent to 1.17 euros on continuing speculation that it might change hands. Asos.com rose 3.7 percent to 40.12 pounds, and Geox ascended 3.5 percent to 2.91 euros. Ted Baker was up 3.5 percent to 17.60 pounds, while Yoox Group advanced 6.3 percent to 22.22 euros.
Among those in retreat were Koovs, down 2.2 percent to 1.53 pounds; Tod’s, 2.8 percent to 98.65 euros; Metro AG, 1.9 percent to 28.83 euros, and Boohoo.com, 3.8 percent to 0.44 pounds.
The euro traded at $1.37 against the U.S. dollar, while the pound fetched $1.68, and the Swiss franc equaled $1.12.
In yet another fashion show shuffle, @elleryland is moving its show in sync with the Paris couture calendar — though the brand is still keeping one foot on the city’s ready-to-wear schedule. Their runway show in January will coincide with the launch of a new strategy: designing two main collections each year instead of four, which will then be released in four drops. “As we all know, the system needs to change. We need to show sooner to give time back to artisans and designers to do what they do best — create,” said founder Kym Ellery. #wwdnews #wwdfashion (📷: @kukukuba)
@maxmara’s classic 101801 coat was the cornerstone of its pre-fall 2018 collection. The design team expanded the traditional double-breasted, kimono-sleeved style into a trapeze coat, lean belted styles and a peacoat and presented them in monochromatic looks – like the camel one pictured here. #wwdfashion #prefall18 (📷: George Chinsee)
The @cfda has shifted the dates of #NYFW, with Men’s showing on February 5 through February 7, and Women’s will directly follow, running from February 8 through 14. The preliminary schedule will be released on the CFDA’s web site in the next few days, but Mark Beckham, VP of marketing for the CFDA, revealed that @rafsimons will be back to close the men’s-specific part of the week with a show on February 7 #wwdfashion (📷: Kelly Taub)
@ferragamo is introducing a new space dedicated to the development of women’s and men’s leather good samples. The laboratory, which is created eco-friendly materials and designed to reduce the environmental impact of the manufacturing processes, will allow the company to expand its accessories offering through traditional artisanal approaches. #wwdfashion (📷: @aitorrosasphoto)
How does a “regular, degular, schmegular” girl from the Bronx, N.Y., become a Grammy-nominated artist with a certified platinum record in less than a year? Call it the @iamcardib come up. The 25-year-old has become a musical sensation, and the fashion world is taking note. “If I could describe her style I would say drama. She’s really into the dramatics,” says Cardi B’s stylist @kollincarter. See how Carter styles her bold and out there looks with the link in bio. #wwdfashion
“There is no formula. There is no guideline. I can watch Ted Talks all day, but there is no one who can advise me on exactly what it is I should be doing,” said @ronniefieg, CEO of @kith, in an interview with WWD’s @ariahughes at the brand’s new SoHo office in Manhattan. Head to WWD.com to see how Fieg went from hanging out in shoe stockrooms at 13 to building his own business. #wwdfashion (📷: @weston.wells)
@fearofgod and @maxfieldla have teamed up on a pop-up installation. The store, located in the gallery space across from Maxfield’s Melrose Ave location, is the site of the brand’s House of God pop-up in which Fear of God founder @jerrylorenzo has created a church-inspired installation. A dozen vintage church pews sit in front of an LED screen playing 90s gospel singers in an effort to re-create an environment akin to a Southern Baptist Church, Lorenzo explained. Read more about the pop-up on WWD.com #wwdfashion (📷: Jennifer Johnson)
Known for his sleek, sophisticated American glamour, Norman Norell is the subject of an upcoming exhibition at @fitnyc. “Norell: Dean of American Fashion,” which runs from February 9 through April 14, will feature approximately 100 ensembles and accessories. His best work is exemplified by the designer’s glittering “mermaid” gowns frosted with thousands of hand-sewn sequins – like the one pictured. (📷: William Helburn) #wwdfashion
For pre-fall 2018, @balmain didn’t let go of the glitz. A crystal embroidered baseball jacket priced at around $40,000 hangs in the “couture” section of the brand’s first men’s pre-collection. Sporting the words “Balmain Army” across the back, the item took around two months to make. “When it was completed, it was like Christmas, it was like, ‘It’s done, it’s exactly what I wanted,’” said Balmain’s creative director @olivier_rousteing during a tour of the collection in a Paris showroom on Monday. #wwdfashion