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.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast