Retail shares fell 1 percent Tuesday as investors looked for inspiration and found little beyond reports that banking giant Citigroup Inc. would unveil a major restructuring.
The Standard & Poor’s Retail Index shed 2.73 points to 274.64, as the Dow Jones Industrial Average slid 25.41 points to 8,448.56.
Traders will get another look at what the recession did to the holiday season when the Commerce Department releases its December sales report today.
Most specialty store stocks fell, including Charming Shoppes Inc., down 13.2 percent to $1.65; Charlotte Russe Holding Corp., 6 percent to $5.47; New York & Company Inc., 5.5 percent to $2.08, and Limited Brands Inc., 3.2 percent to $8.75.
Many broadline retailers also traded down. They included regional department store Gottschalks Inc., which is trying to avoid bankruptcy. Its shares fell 12.2 percent to 18 cents; Saks Inc. was down 3.2 percent to $3.60; Nordstrom Inc., 1.9 percent to $13.11; J.C. Penney Co. Inc., 1.8 percent to $20.30, and Target Corp., 0.5 percent to $34.94.
The Men’s Wearhouse Inc. managed to buck Tuesday’s negative trend, rising 2.8 percent to $12.67, but Jason Asaeda, analyst with Standard & Poor’s Equity Research, said the stock had moved too far and downgraded it to “sell” from “hold.”
“Weighing our guarded company outlook against the stock’s recent price increase, we now view [Men’s Wearhouse] shares as overvalued,” Asaeda said, noting that the firm’s U.S. tailored clothing sales were being driven by aggressive promotions and Canadian sales were tracking below expectations. The analyst has a target price of $11 on the stock.
Shares of Amazon.com dipped 0.9 percent to $51.45 despite a nod of approval from Moody’s Investors Service, which said it was considering a boost to the online retailer’s long-term debt rating after a strong holiday showing. The firm’s corporate family credit rating is just one notch into speculative territory at “Ba1.”
Debt downgrades have been more common than upgrades as firms struggle against weakened consumer spending and a shrinking economy. But Amazon has been outperforming other companies vying for the consumer’s dollar and attention.
Last month, the Web site said 2008 marked its best holiday ever, with more than 6.3 million items ordered Dec. 15 alone, which was the site’s peak day for the season.
“Amazon’s ability to achieve sizable sales growth with a reasonable level of profitability during a very challenging retail climate is strong evidence of the stability and success of Amazon’s business model,” said Maggie Taylor, Moody’s vice president and senior credit officer. The debt agency’s review also will look at the firm’s liquidity, capital structure and financial policies.
On the vendor side, Perry Ellis International Inc. rose 6.4 percent to $4.80. At a Cowen and Co. investment conference, the company said revenues from C&C California and Laundry by Shelli Segal tallied about $30 million last year, or half of the $60 million the company had been expecting. However, revenues from the two brands are projected to double every year for the next three to five years, said the firm. Perry Ellis bought the businesses from Liz Claiborne Inc. for $33.1 million last February.
Taking the final spot on the mens’ portion of New York Fashion Week calendar next month will be none other than @tomford. Though he’s shown his men’s wear in New York in the past, this will mark the first time the designer has shown his men’s collection alone during New York Fashion Week: Men’s. His runway show will debut on February 6 at the Park Avenue Armory. #wwdfashion
London-based couture house @ralphandrusso has certainly been in the spotlight, having its dresses worn by @beyonce, Angelina Jolie, Meghan Markle in her engagement photos and more. For couture, Tamara Ralph focused on ornamentation — think: feathers with chain mail, jet embroidery and clusters of pearls and crystals. See the rest of the collection on WWD.com #wwdfashion #couture (📷: @giovanni_giannoni_photo)
Minnie Mouse celebrated her 90th birthday by getting her own star on the Hollywood Walk of Fame. For her celebratory luncheon, @coach’s creative director @stuartvevers dressed her in a custom made prairie dress, complete with Vever’s take on the polka dot – black sequined versions – under a cropped motorcycle jacket. The designer also put his own mark on Minnie’s classic red shoes, infusing the color with sparkles and adding some Coach crystals. “We chose colors that were very Minnie and also represented quintessential Coach elements,” said Vevers. #wwdfashion #nationalpolkadotday (📷: George Chinsee)
@nickjonas is unveiling his first-ever apparel collection through a partnership with John Varvatos. The limited-edition capsule, which makes its debut in spring, also marks the first time the designer has collaborated with anyone on a line. “The process in working with Nick is amazing. It’s inspiring to be around someone who is not only connected with the trade that they do, but also with what’s happening in the environment around him, and how that connects to what we do with style,” said Varvatos. (RG: @johnvarvatos) #wwdfashion
@margotrobbie steps out onto the red carpet wearing @miumiu. The actress is nominated for “Outstanding Performance by a Female Actor in a Leading Role” in “I, Tonya” at the #SagAwards. (📷: Stewart Cook) #wwdfashion
For @massimogiorgetti of @msgm, the Nineties are his favorite decade. “They had a huge impact on my personal growth. What I like of the Nineties is that they are not so precise in terms of style as other decades…there was actually a bit of everything,” he said. As seen on MSGM’s Spring 2018 show: tie-dye and a bit of grunge, two styles that are synonymous with the decade #wwdfashion #wwddecades (📷: @kukukuba)