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.
@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)