Retail stocks fell over 2 percent Thursday as renewed concerns about the housing and finance markets combined to sink the Dow Jones Industrial Average more than 283 points.
Among the biggest decliners was Charlotte Russe Holding Corp., whose shares lost about one-seventh of their value, dropping at one point to a three-year low after the firm was downgraded by Roth Capital to “hold” from “buy.” The company late Wednesday said it expected same-store sales to decline in the low- to midsingle digits during its current fourth quarter, with earnings per share, excluding charges, coming in at 15 to 23 cents, well below the 30 cents initially expected by analysts.
The San Diego-based company’s shares were down 14.8 percent to close at $12.47 and traded as low as $12.05.
While the Dow Jones fell 2.4 percent to 11,349.28, with a drop in existing home sales and Ford Motor Co.’s worst loss in history adding to jitters, the Standard & Poor’s Retail Index was hit by a 2.3 percent drop, ending the day at 352.56.
The retail declines were across the board, strongest in but not limited to specialty stores. Among the sharpest declines were Dillard’s Inc., which fell 10.3 percent to $10.49; Charming Shoppes Inc., which dropped 7.2 percent to $5.04, and Chico’s FAS Inc. and Coldwater Creek Inc., both declining 7 percent to $5.85 and $6.68, respectively. Saks Inc. was off 6.7 percent to $10.71. Among vendors, Liz Claiborne Inc. shares dropped 7 percent to $13.07, Coach Inc. slid 6.6 percent to $27.58, Fossil Inc. was down 6.4 percent to $27.44 and Jones Apparel Group Inc. lost 6.3 percent to $15.25.
Caché Inc. reported better, and better-than-expected, second-quarter earnings and sales, including those of the same-store variety, but still saw its shares sink 3.1 percent to $13.57.
For the 13 weeks ended June 28, the New York-based women’s specialty chain posted net income of $2.1 million, or 16 cents a diluted share, 63.9 percent above the $1.3 million, or 8 cents, reported in the year-ago quarter. Analysts on average expected earnings of 15 cents. Excluding legal settlement costs in the 2007 quarter, profits were up 10.3 percent.
Sales in the quarter were up 4.1 percent, to $74 million from $71 million, and rose 3 percent on a same-store basis against a 1 percent increase in the 2007 period.
Gross margin declined to 46.2 percent of sales from 47.8 percent in last year’s quarter, which the company attributed both to its new pricing strategy and the integration of its in-house design team after the acquisition last year of Adrienne Victoria Designs. Thomas Reinckens, chairman and chief executive officer, said these moves and a new emphasis on collection dressing “are expected to raise sales productivity and operating margins going forward as we benefit from increases in shopping frequency, expansion of our customer base and greater leverage of expenses.”
The ceo noted that inventory per store was down 17 percent from a year ago at the end of the quarter, and that July sales were coming in at plan. The firm, which operates 296 stores under the Caché and Caché Luxe banners, made no changes in its guidance for the remainder of the year. Comparable-store sales are forecast to increase in the low- to midsingle-digit range. Earnings are projected to end the year at 39 to 42 cents a share on a diluted basis.
For the six months to date, Caché had net income of $52,000, or no cents a share, against year-ago profits of $1.4 million, or 9 cents a diluted share. Excluding legal costs last year and 14 cents a share to cover store exit costs and those associated with the departure of Brian Woolf as ceo earlier this year, EPS would have been up to 14 cents a share from 12 cents a year ago.
Revenues moved ahead 4.7 percent to $141.7 million and comps climbed 3 percent.�
@fearofgod and @maxfieldla have teamed up on a pop-up installation. The store, located in the gallery space across from Maxfield’s Melrose Ave location, is the site of the brand’s House of God pop-up in which Fear of God founder @jerrylorenzo has created a church-inspired installation. A dozen vintage church pews sit in front of an LED screen playing 90s gospel singers in an effort to re-create an environment akin to a Southern Baptist Church, Lorenzo explained. Read more about the pop-up on WWD.com #wwdfashion (📷: Jennifer Johnson)
Known for his sleek, sophisticated American glamour, Norman Norell is the subject of an upcoming exhibition at @fitnyc. “Norell: Dean of American Fashion,” which runs from February 9 through April 14, will feature approximately 100 ensembles and accessories. His best work is exemplified by the designer’s glittering “mermaid” gowns frosted with thousands of hand-sewn sequins – like the one pictured. (📷: William Helburn) #wwdfashion
For pre-fall 2018, @balmain didn’t let go of the glitz. A crystal embroidered baseball jacket priced at around $40,000 hangs in the “couture” section of the brand’s first men’s pre-collection. Sporting the words “Balmain Army” across the back, the item took around two months to make. “When it was completed, it was like Christmas, it was like, ‘It’s done, it’s exactly what I wanted,’” said Balmain’s creative director @olivier_rousteing during a tour of the collection in a Paris showroom on Monday. #wwdfashion
Eighty degree temperatures and outdoor installations at the annual Art Basel Miami Beach called for bright, elevated beachwear. See more street style pictures on WWD.com. #theyarewearing #ABMB (📷: @lifeinreverie)
Following September’s emotional tribute to her brother Gianni, Donatella Versace wanted to bring the spring show’s deep sense of intimacy to her @versace_official pre-fall collection. Donatella found inspiration in Versace Palazzo in Milan and from Gianni’s opulent apartment. Archival patterns and new motifs were splashed on silk shirtdresses and fitted jersey frocks. See the rest of the photos on WWD.com. #wwdfashion
Demna Gvasalia continues to shake up the Paris fashion calendar — and experiment with new runway timetables for his @vetements_official brand. WWD has learned that Vetements plans to stage its next coed show for the fall 2018 season on January 19 during Men’s Fashion Week in the French capital. Details about the timing and venue have not been confirmed — stay tuned on WWD.com to catch the latest. #wwdnews (📷: @giovanni_giannoni_photo)
@zacposen's go-to holiday gift? Cookies! "I'll usually bake cookies and send them as a gift," said the designer, who recently released his cookbook "Cooking With Zac: Recipes from Rustic to Refined." Get the recipe for his Brown Butter-Chocolate Chip Cookies via link in bio 🍪🍪🍪 #wwdeye #cookingwithzac
For @monsemaison’s pre-fall 2018 collection, Fernando Garcia and Laura Kim honed in on the brand’s many signatures — men’s wear, which was tweaked and feminized through deconstruction, proportion play and lots of bare shoulders. See the rest of the photos on WWD.com #wwdfashion (📷: George Chinese)
On Friday night, @yohjiyamamotoofficial received the Design for Asia Lifetime Achievement Award in Hong Kong. The 75-year-old designer has been celebrated for many years and is best known for his dark and avant-garde tailoring. “In my long career, in design, architecture, [I’ve been to] so many parties, this is the very first time that I have such a warm feeling, I really appreciate this,” Yamamoto said. #wwdfashion (📷: @dominiquemaitre)