Retail shares plummeted 7.1 percent Wednesday as the equity markets were besieged by fears about price deflation, the health of Citigroup and the waning prospects for an auto-sector bailout from Washington.
The Standard & Poor’s Retail Index lost 17 points to end at 222.46 — its lowest close on record and down one-third from June 2002, when the index was recalibrated.
On the broader market, the Dow Jones Industrial Average fell 5.1 percent, or 427.47 points, to 7,997.28, the lowest finish for the benchmark index since March 2003.
Apparel vendors were particularly battered by investors and appear to be suffering from an ever-darkening outlook for the holiday season and next year, as well as continued third-quarter losses and declines among their key customers.
The Warnaco Group Inc., which said it would cut payrolls and capital spending, saw its shares fall 13.7 percent to $13.29.
That was hardly the worst of it. Shares of Liz Claiborne Inc. dropped 32 percent to $2.13, while Jones Apparel Group Inc. was off 21.1 percent to $4.83. Among the other decliners were VF Corp., down 10.1 percent to $39.88; Kenneth Cole Productions Inc., 9.8 percent to $6.65, and Polo Ralph Lauren Corp., 9.7 percent to $32.80.
Losing significant chunks of market capitalization among specialty stores were Charming Shoppes Inc., down 16 percent to 63 cents; Charlotte Russe Holding Corp., 13.2 percent to $4.69; Guess Inc., 12.6 percent to $11.40; Urban Outfitters Inc., 11 percent to $13.30; American Eagle Outfitters Inc., 10.4 percent to $7.50, and AnnTaylor Stores Corp., 10.2 percent to $5.30.
Most department stores and national chains fared better, with the exception of Nordstrom Inc., which was off 13.5 percent to $8.98. Posting lesser declines were J.C. Penney Co. Inc., off 7.6 percent to $15.21; Macy’s Inc., 6.7 percent to $5.68 and Kohl’s Corp., 6.2 percent to $26.39.
Saks Inc. shares fell 5.2 percent to $3.12 before news came after the market’s close that Moody’s Investors Service was reviewing the company’s debt rating for possible downgrade in light of lower-than-expected third-quarter losses.
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