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.
@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)