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.
“What he has done at Vuitton is really exceptional,” said @gameofthrones’ actress Gwendoline Christie on @mrkimjones’ final show for @louisvuitton. “He has rebooted luxury in terms of making it commercial, viable and contemporary. And most importantly artistic. He has never compromised his artistic vision for the sake of commodity.” (📷: @zefashioninsider)
After seeing a demand for men’s wear from its customers, British contemporary women’s wear label @ariesarise has added a men’s wear component and will launch a unisex collection with @mrporterlive. The 20-piece collection includes jackets, denim, logo T-shirts and more with deconstructed ‘90s vibes. Set to launch on January 18, you can shop the pieces on Aries’ website and on mrporter.com. #wwdfashion
“And so spending so much time with a character who thinks like that, inevitability you try and analyze yourself and go back and think about your own demons and dark chapters that you had in your life,” says @thedanielbruhl of his role in TNT’s “The Alienist.” The show, set in the Gilded Age of New York, also stars Dakota Fanning and Luke Evans. Head to WWD.com to read about how 39-year-old Brühl prepared for the role and why he thinks the show is so relevant to today #wwdeye ( 📷: @Eriktanner)
Now that Celine Dion’s collection has topped $10 million in sales, the pop superstar, fashion icon and newly-minted industry player is eyeing growth in Asia. Read the full report by @tiffanyap, link in bio. #wwdnews #celinedion
“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)
Among the familiar faces at @off____white’s show was a surprise figure: Japanese artist @takashipom, pictured here on Wednesday morning. Other show-goers included @jerrylorenzo, who spoke about his upcoming project: a @nike collaboration for back to school, with designs inspired by his childhood on the West Coast. Sitting in the front row were Future, Don Crawley, @miguel and more. See the rest of the photos on WWD.com #wwdeye (📷: Stephane Feugere)
According to @laurentsai, former “Terrace House: Aloha State” cast member, she didn’t know she was auditioning for the Japanese version of “Real World.” “I was telling a couple of my friends and someone’s like, ‘That sounds a lot like Terrace House.’ I was like, ’No it can’t be.’” Turns out, it was. But Tsai isn’t just a reality star — she’s an illustrator who has worked with Starbucks Japan and most recently, she’s dipping her toes into the fashion world. Head to WWD.com to read about her time on the show, modeling and her art. #wwdeye (📷: @danieldorsa)
More changes are coming to New York Fashion Week: Beginning with the spring 2019 collection, @alexanderwangny will move his New York show to June from September, adopting a biannual schedule with collections shown in June and December. Additionally, the @cfda is planning for an official summer/winter fashion season taking place as soon as June and December 2018. Read more about the upcoming changes on WWD.com. #wwdnews #wwdfashion (📷: @slovekinpics)