Concerns about a less than spectacular first-quarter retail earnings season — coupled with growing tensions in Ukraine and mixed earnings results elsewhere — sent retail stocks to their fifth worst session of 2014.
The S&P Retailing Industry Group declined 19.38 points, or 2.3 percent, to end the trading day at 843.10.
The larger market fared somewhat better, although hardly well, as the Dow Jones Industrial Average fell 0.8 percent to 16,401.02 and the S&P 500 was off 0.9 percent to 1,867.72.
Among only a handful of fashion, retail and beauty stocks to see gains on the day was Vera Bradley Inc., up 2.3 percent to $29.69. Delia’s Inc. shares were up 1.5 percent while The Men’s Wearhouse Inc. rose 0.4 percent to $48.53.
Twitter Inc.’s value declined 17.8 percent, to $31.85, and in midday trading hit their lowest point since the company’s initial public offering as restricted shares became available for sale. American Apparel Inc. had the largest decline among apparel retailers, falling 7.8 percent to 58 cents, while Nu Skin Enterprises Inc. saw its shares decline 7.1 percent to $81.38 after it reported first-quarter profits and sales that exceeded analysts’ expectations but issued second-quarter guidance that fell short of them.
In advance of the filing of comparable sales results by retailers on Thursday, the International Council of Shopping Centers and Goldman Sachs reported in their chain store sales index that sales for the week ended on Saturday were off 2 percent from the prior week, although 2 percent above year-ago results. Softness was noted at discounters and department and specialty stores.
European markets edged down at the close of trading, with the CAC 40 in Paris leading the way. The French market was down 0.8 percent to 4,428.07, followed by the DAX in Frankfurt, 0.7 percent to 9,467.53, and the FSTE MIB in Milan, 0.6 percent to 21,521.65. The FTSE 100 in London dipped 0.4 percent to 6,798.56.
Retail and luxury stocks were mostly down, including Aeffe, the Italian clothing manufacturer and brand owner that has been the subject of takeover speculation over the past week.
Its shares sank 9.5 percent to 1.18 euros after it said it is not looking to sell a stake.
“We emphasize that there is neither the intention nor the need to find a financial partner to whom to sell a significant minority stake. In fact, the company has shown a great ability to react to market changes, defining effective business strategies, which are already having positive results,” the company said.
Elsewhere, Asos.com fell 2.9 percent to 41.75 pounds; Carrefour, 2.2 percent to 26.18 euros; Yoox Group, 2.8 percent to 24.68 euros; and Italia Independent Group, 2.2 percent to 38.62 euros.
Among the few stocks that gained ground were Mulberry Group, up 4.6 percent to 7.35 pounds; Hugo Boss, 1.2 percent to 100.07 euros, and French Connection Group, 15.4 percent to 92 pence. French Connection’s strength stems from the continuing halo effect of an upbeat trading statement last month. The company said that sales rose 11 percent in the 11 weeks to April 12.
The euro traded at $1.39 against the U.S. dollar while the pound fetched $1.69, and the Swiss franc equaled $1.14.
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)
For the holidays, @Burberry partnered with 20-year-old artist @blondeymccoy on a series of three outdoor murals in downtown Manhattan. The murals are McCoy’s interpretation of a Christmas eve party, the idea of charity and the spirit of family. His third mural, pictured here, is the most personal. The image depicts McCoy’s grandparents and father in London’s Trafalgar Square in the Seventies. “My work often features lots of sentimental objects.” #wwdeye
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