Retail stocks kicked off what should be a busy week with a 1.3 percent decline Monday as investors prepared for first-quarter profit reports.
The S&P Retail Index dipped 4.36 points to 327.87 as the Dow Jones Industrial Average fell 1.8 percent, or 155.88 points, to 8,418.77. International markets were also off, with the Hang Seng losing 1.7 percent in Hong Kong and the CAC 40 off 1.9 percent in Paris. Shares of PPR fell 7.1 percent to 59.26 euros, or $80.83, and LVMH Moët Hennessy Louis Vuitton decreased 2.3 percent to 59 euros, or $80.47.
Two U.S. retailers that are to report quarterly results this week bucked the stock trend: Kohl’s Corp. rose 2.1 percent to $44.84 and Wal-Mart Stores Inc. inched up 1 percent to $50.63.
Also readying their quarterly report cards, but losing ground in the markets, were J.C. Penney Co. Inc., down 5.2 percent to $28.91; Abercrombie & Fitch Co., 4.2 percent to $25.43; Nordstrom Inc., 2.9 percent to $22.42, and Macy’s Inc., 1.1 percent to $12.69.
Retail analysts at UBS Securities said a recent survey of 1,000 consumers found shoppers are still hunkering down.
“Bills and debt are high among consumers’ minds when spending, but gas prices are down considerably [year-over-year], which may be opening the door for more opportunistic purchases,” said the analysts.
The travails of consumers and retailers are hurting the suppliers.
Moody’s Investors Service changed its outlook on about $1.5 billion of the Estée Lauder Cos. Inc.’s debt to “negative” from “stable” as the recession clamps down on the sale of discretionary goods. The debt watchdog affirmed the beauty firm’s debt rating at “A2.”
“[Lauder’s] ability to restore its credit metrics and profitability to historic levels is dependent on its successful execution of a number of key restructuring initiatives, improvement in the U.S. retail operating environment and a stabilization of global economic activity,” said Janice Hofferber, a Moody’s vice president and senior credit officer.
Shares of Lauder dipped 0.2 percent to close at $33.85.
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews