Retail shares ended a tough week and month with their worst performance of the year as concerns about emerging markets and fourth-quarter financial performance continued to weigh on the investment community.
The S&P 500 Retailing Industry Group fell 2.6 percent to 867.60, leaving it off 2.8 percent for the week and down 7.7 percent for January. Finishing the worst performance by the major indices since May 2012, the Dow Jones Industrial Average declined 0.9 percent to 15,698.85 and the S&P 500 lost 0.7 percent to end the day, week and month at 1,782.59.
The Dow slid 5.3 percent in January while the S&P was off 3.6 percent.
In addition to concerns ranging from manufacturing activity in China and Turkey’s currency to low rates of inflation in the euro zone and rising inflation in Brazil, retail observers absorbed word that Wal-Mart Stores Inc. would report fourth-quarter earnings at the low range of its previous guidance of $1.60 to $1.70 a diluted share as U.S. comparable sales for the period, excluding fuel, were expected to be down slightly, rather than flat to up about 2 percent as earlier projected. Shares of the retailer held up reasonably well nonetheless, pulling back 0.1 percent to $74.68.
Shares of Amazon.com Inc. fell 11 percent to $358.69 as fourth-quarter earnings and sales, along with first-quarter guidance, fell below Wall Street’s expectations.
American Apparel Inc retreated 4.3 percent to 99 cents while Fossil Group Inc. surrendered 3 percent to end the day at $111.83.
Among only about two dozen fashion, beauty and retail stocks tracked by WWD to gain ground were Cache Inc., up 6.8 percent to $5.06; Under Armour Inc., up 3.2 percent to $108.11 one day after reporting earnings that easily beat expectations, and J.C. Penney Co. Inc., up 2.6 percent to $5.92 after hitting a 52-week low on Thursday.
European stock markets were mostly down at the close of trading on Friday, with the exception of the FTSE MIB in Milan, which rose less than 0.1 percent to 19,418.34.
The DAX in Frankfurt was down 0.7 percent to 9,306.48, while the FTSE 100 in London fell 0.4 percent to 6,510.44, and the CAC 40 in Paris dipped 0.3 percent to 4,165.72.
For the month, only the Milan exchange advanced, up 2.4 percent from its close on Dec. 31. The FTSE 100 is off 3.5 percent so far this year, the CAC 40 down 3 percent and the DAX lower by 2.6 percent.
Retail and luxury stocks put on a mixed show, with the day’s biggest gainers including LVMH Moët Hennessy Louis Vuitton, which climbed 7.9 percent to 132.35 euros; Moncler, 1.8 percent to 14.12 euros; Hermès, 4.1 percent to 236.25 euros; Brunello Cucinelli, 3.9 percent to 20.25 euros, and Burberry Group, 2.6 percent to 14.48 pounds.
Among the stocks that lost the most ground were Asos.com, 1.9 percent to 61.81 pounds; Metro AG, 1.4 percent to 30.59 euros, and Unilever, 1.4 percent to 27.70 euros.
The euro traded at $1.36 against the U.S. dollar while the pound fetched $1.65 and the Swiss franc equaled $1.11.
London’s newly opened @designmuseum will look back on the life and work of Azzedine Alaïa in a show that the designer helped to curate before he died of heart failure last month. The retrospective, which Alaïa had worked on with Mark Wilson, chief curator of the @groningermuseum, will look at the impact of his work worldwide. The show, “Azzedine Alaïa: The Couturier,” will run from May 10 to October 7. Read more about the exhibit on WWD.com #wwdnews #wwdfashion (📷: @zefashioninsider)
@Pharrell and his wife Helen Lasichanh were among the stars that came out to celebrate @rimowa’s first pop-up concept shop. The space, which is located on Rodeo Drive in Beverly Hills, draws inspiration from airport luggage carousels and lounge areas – and features the company’s luggage and accessories. If the pop-up is successful it could pave the way for addition temporary shops throughout the world. #wwdfashion (📷: Owen Kolasinski/BFA)
@carineroitfeld celebrated @crfashionbook’s first calendar last night with a dinner party at Spring Place in Manhattan. Photographed by @stevenkleinstudio, the calendar takes on a fitness theme and features @joansmalls, @gigihadid, @danielle_herrington_ – pictured here – and more. “[Carine Roitfeld] wanted me to feel sexy and she wanted me to be myself and feel it out on my own and do what I felt was right,” said Herrington, aka Miss October. #wwdeye
@saintrecords and @virgilabloh last night at @americanexpress’ “A Night With Success Makers” event. “I always bring it back to community because without that I wouldn’t have the courage,” said Knowles when asked how she has gotten where she is now. Read more highlights from their conversation on WWD.com. #wwdeye (📷: @lizdoupnik)
This Just In: Industry sources have told WWD that Anastasia Soare is rumored to be considering selling her beauty business, @anastasiabeverlyhills. According to those sources, Soare has tapped investment bank Imperial Capital to explore sale options for her eponymous beauty brand –– and with at least $340 million in net sales, this would be a big deal. Put in context of other recent transactions for makeup companies, Soare’s price tag could be in the billions if she were to sell the whole thing. #wwdnews #wwdbeauty (📷: @clint_spaulding)
@assouline’s latest book, “The Spirit of Bentley: Be Extraordinary” captures the adventurous attitudes and opulent lifestyles of @bentleymotors’ most creative owners and enthusiasts throughout the U.K. The 292-page hardcover has a section dedicated to showing its team of skilled artisans and photos of its most colorful owners, from George Bamford to designer @alicetemperley, pictured here by Aline Coquelle. #wwdeye
@google released its report on the most popular search terms this year. For fashion brands, the list was led by @gucci, the luxury brand that stunned the market last October when it pledged to stop using fur. Runner ups were @supremenewyork and @fashionnova, along with more established brands like @louisvuitton, @chanelofficial and @ysl. #wwdfashion (📷: @aitorrosasphoto)
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)