Retail stocks moved lower Tuesday, ending a five-day winning streak and lowering stores’ market capitalization for only the second time this month.
The Standard & Poor’s Retail Index ended the day down 8.52 points, or 3 percent, at 278.57, as all major indices moved lower on concerns about earnings outlooks and continuing, intensifying job cuts.
Earlier in the day, European stocks, picking up on the buoyant mood established on Wall Street on Monday, moved higher. In Paris, PPR advanced 11.5 percent, and LVMH Moët Hennessy Louis Vuitton gained 6.6 percent as the CAC 40 was up 1.6 percent. In London, Burberry Group plc gained 6.3 percent as the FTSE 100 expanded 1.9 percent.
Gains were considerably harder to come by in the U.S., however, as retailers and vendors alike took shots to their shares after five straight positive sessions. Perry Ellis International Inc. sustained an 18.3 percent drop, closing at $6.22, and two specialty chains, Wet Seal Inc. and Urban Outfitters Inc., declined 13.1 percent and 11.6 percent, respectively. New York & Company Inc. shrugged off sectoral weakness with a 9.9 percent gain. Confronted on Monday by another round of pressure from activist shareholders Barington Capital Group and Clinton Group, Dillard’s Inc. dropped 11 percent, while Saks Inc. shares were dealt an 8.9 percent blow.
Alberta Ferretti's "Rainbow Week" sweaters are back. The designer closed her #MFW show with a few day-of-the-week sweaters, which first debuted on the catwalk last January as part of the pre-fall 2017 collection. #wwdfashion (📷: @delphineachard)