Retail stocks were battered Wednesday when stock markets tumbled amid the latest round of fears about the housing slump and troubled mortgage lenders.
Among those feeling the pain were stores that disclosed their June comparable-store sales ahead of the pack. Comp-store sales for Chico's FAS Inc. fell 12.9 percent for June, sending the company's stock down 5.4 percent to $5.03. Despite a 6 percent rise in comps from June 2007 to June 2008, Caché Inc. shares dropped 8.3 percent to $11.63 on word that it had lowered its third-quarter guidance. Even shares of Buckle Inc., which announced a same-store sales surge of 28.9 percent, remained relatively flat, down 0.5 percent to $46.47.
Teen retailers were generally among the hardest-hit. Zumiez Inc. slumped 6.6 percent to $17.10, Abercrombie & Fitch Co. fell 5.8 percent to $57.18, American Eagle Outfitters Inc. slid 4.8 percent to $12.99, Pacific Sunwear of California Inc. dropped 4.4 percent to $8.28, and Aéropostale Inc. diminished 3.9 percent to $31.96.
Overall, the bear market gained momentum as the Standard & Poor's Retail Index fell 3.3 percent to 34.67. The Dow Jones Industrial Average sank 236.77 points, down 2.1 percent, to 11,147.44, while the S&P 500 dropped 2.3 percent to 1,244.68.
In the department store sector, J.C. Penney Co. Inc. dove 5.7 percent to $35.67, Sears Holdings Corp. dropped 4.6 percent to $72.54, Macy's Inc. declined 4.4 percent to $18.04, Kohl's Corp. fell 5.1 percent to $42.18 and Nordstrom Inc. dipped 4 percent to $31.24.
Wal-Mart Stores Inc. fell 2.4 percent to $57.67, while rival Target Corp. was off 2.8 percent to $47.32.
The Talbots Inc. registered an 8.4 percent decline to $10.98. AnnTaylor Stores Corp. fell 3.6 percent to $23.22. Charming Shoppes Inc. was one of the few retailers to beat the trend, as investors seemed to approve the resignation of the plus-size apparel retailer's chief executive officer, Dorrit Bern. The company closed at $4.84, up 3 percent.
Vendors also suffered. Coach Inc. dropped 6.9 percent to $26.80, Liz Claiborne Inc. sagged 5.5 percent to $12.67 and Lululemon Athletica Inc. tumbled 6.3 percent to $25.72. Maidenform Brands Inc., which announced the appointment of Maurice S. Reznik as chief executive officer, fell 4.1 percent to $12.37. Phillips-Van Heusen Corp. dropped 3.8 percent to $35.44 and VF Corp. was off 2.1 percent to $73.69. Warnaco Group Inc. emerged with a 1 percent decline to close at $42.79.
After the bell Wednesday, Hot Topic Inc. reported a 0.3 percent drop in June same-store sales and Zumiez said its June comps fell 3.4 percent.
@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)