Retail stocks slid 1.9 percent Monday, joining in the general market sell-off that accompanied the Obama administration’s plan to remake the U.S. auto industry beginning with the ouster of General Motors chairman and chief executive officer Rick Wagoner.
The S&P Retail Index fell 5.76 points to 291.12 as the Dow Jones Industrial Average slid 3.3 percent, or 254.16 points, to 7,522.02.
On Monday, Moody’s Investors Service cut its credit rating on $510 million of The Bon-Ton Stores Inc.’s debt, lowering the retailer’s corporate family rating to “Caa2” from “B3,” a drop of two steps on Moody’s rating scale. Debt in the “Caa” category is judged to be of “poor standing,” according to the rating agency.
“The two-notch downgrade reflects not only Bon-Ton’s weaker operating performance, but also Moody’s concern with the company’s liquidity profile over the intermediate term and with its capital structure, which we consider to be increasingly unsustainable given the current level of performance,” the ratings agency said. Shares of Bon-Ton slid 9.4 percent to $1.63.
Kohl’s Corp. said chairman Larry Montgomery’s total pay rose 16.8 percent to $3.2 million last year, including a salary of $1.2 million, options valued at $1.9 million, $28,009 for automobile expenses and $104,785 for use of the company’s aircraft, according to a filing with the Securities and Exchange Commission. Kevin Mansell, who succeeded Montgomery as ceo in August, saw his compensation jump 54.1 percent to $3.5 million. His take included a salary of $1.1 million, stock awards and options valued at $2.3 million, as well as $27,521 for automobile expenses and $45,703 for use of the firm’s aircraft. Kohl’s stock fell 3.5 percent to $41.63 Monday.
Luxury stocks have also been hit hard.
Tiffany & Co. director Peter May’s Trian Fund Management divested 2.3 million shares of the firm last week, a position worth about $50.9 million. The fund unloaded the stock in the two days after Tiffany’s March 23 announcement that its fourth-quarter profits fell by 75.6 percent, according to documents filed with the SEC. Trian remains the largest holder of Tiffany stock, with 8.4 million shares, or 6.8 percent of the 123.8 million shares outstanding as of Jan. 31. Tiffany’s stock fell 5.4 percent to $21.21 Monday.
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye
“It’s passion that helps get anybody to a certain point and it’s what’s propelled me,” said Kith founder @ronniefieg, one of WWD’s 40 under 40: a group of industry notables who are changing the face of retail, fashion and beauty. Fieg, who opened a Manhattan flagship on October 7, began his career at age 13 as a stock boy and salesman for footwear chain David Z. “I think staying true to [my] beliefs, hard work and passion have gotten me to where [Kith] is today.” See the rest of the 40 at WWD.com. (📷: @vsteves) #wwd40
25-year-old @samweaving is about to break out this fall, starring in Netflix’s horror film “The Babysitter,” fittingly out today on Friday the 13th. That’s not the only place you’ll be seeing her, though — Weaving’s got a role Showtime’s “SMILF” and another alongside Frances McDormand and Woody Harrelson in “Three Billboards Outside Ebbing, Missouri.” Though she’s got a full plate at the moment, there’s one role she’s got her eye on: Marilyn Monroe. “I’m a little too young at the moment, but it’s on my bucket list,” the actress told WWD (📷: @dandoperalski) #wwdeye
BFF's Poppy Jamie and Suki Waterhouse celebrated the launch of their bag line Pop x Suki at Nordstrom last night. "The line is really about our friendship, and how we are so different but complement each other," said Waterhouse. 👯 (📷: Katie Jones) #wwdeye
After designing the new @louisvuitton and @bulgariofficial flagships and a @chanelofficial boutique opening in Japan, @petermarinoarchitect has another project on his plate: The Lobster Club. Located in the Seagram Building, it’s the famed architect’s first restaurant project in New York, serving up modern Japanese brasserie-style cuisine. Bronze hues, bespoke material detailing, blush and chartreuse tones and a heavy emphasis on Picasso can be seen throughout. Mark your calendars for Nov. 1 for the much-anticipated opening. (📷: @clint_spaulding) #wwdeye
Did you know: @carlychaikin of "Mr. Robot" has been painting for about a decade? The actress, who plays Darlene on the show, is a self-taught artist who lists Salvador Dalí and Chuck Close as some of her idols. Chaikin told WWD that painting is a form of meditation for her — A much-needed one given the intensity of "Mr. Robot." See a piece Chaikin is working on at WWD.com (📷: @jilliansollazzo) #wwdeye