Retail shares tumbled to their second worst decline of the year on Tuesday as rising fears about the adequacy of the Greek debt bailout and the spread of the crisis sent stocks into a global tailspin.
The S&P Retail Index, which was within a point of 500 on April 26, closed at 469.20, down 14.15 points, or 2.9 percent, second only to the 3.2 percent sell-off on April 27. The Dow Jones Industrial Average declined 2 percent, a 225.06-point drop that pushed it under 11,000 to 10,926.77, the index’s most severe battering since Feb. 4. The S&P 500 surrendered the 1,200 mark, dropping 2.4 percent to 1,173.60.
At its peak of 499.91 last week, the S&P Retail Index was up 21.6 percent for the year. It has dropped 6.1 percent since then.
Declines were even worse in Europe as demonstrators took to the streets in Greece to protest the austerity plan tied to the bailout. In Germany, seen as the leader in the orchestration of the rescue, the DAX dropped 2.6 percent to 6,006.86. London’s FTSE 100 was off 2.6 percent to 5,411.11, but the CAC 40 in Paris was down more on a percentage basis, shedding 3.7 percent to 3,687.39.
In Greece, the Athex Composite Index gave up 123.87 points, or 6.7 percent, to close at 1,729.68. Markets in Spain and Portugal, two of the countries seen as most vulnerable to a Greek debt contagion, were off more than 5 percent.
The euro ended the day below $1.30 for the first time in more than a year.
One of the few retail issues in the U.S. to escape the carnage was AnnTaylor Stores Corp., which saw its shares move up $2.11, or 9.3 percent, to close at $24.76 after the retailer said first-quarter earnings would “significantly exceed expectations” and be “substantially better” than the 4-cent-a-share loss registered during the first quarter of 2009. The consensus among analysts polled by Yahoo Finance is for earnings per share of 17 cents.
Although it didn’t guide the market to a specific EPS figure, the company said first-quarter sales are expected to reach $475 million, up from the $445 million outlook provided on March 12, with same-store sales rising 11 percent — 15 percent at Ann Taylor and 9 percent at the Loft division. Gross margin is expected to rise to 59 percent versus the 56.5 percent forecast previously. Kay Krill, president and chief executive officer, said “strong full-price sales, our successful planned promotional strategy and our ongoing focus on carefully managing inventories” were among the factors responsible for the rosier outlook.
Shares of The Bon-Ton Stores Inc. fell 6.5 percent, to $16.62, despite an upgrade from Moody’s Investors Service, to “B3” from “Caa1,” based on its improving operating performance, much of it derived from stricter inventory management.
In honor the @CFDA’s announcement of @iamnaomicampbell receiving the Fashion Icon Award at the 2018 #CFDAAwards, which will take place on June 4, here’s a #tbt of the supermodel on @michaelkors’ runway in 1991. #wwdfashion #wwdarchive (📷: George Chinsee)
“I was making the guacamole when my scout saw me,” says model @stuckinteenage on being discovered just six months ago while working at @chipotlemexicangrill. Since then Williams has signed with @dnamodels, walked in her first show at @calvinklein and landed on the cover of @vogueitalia – a high point of any model’s career. To read @lisajlockwood’s full interview with the model on her experiences thus far, head to WWD.com – link in bio. (📷: George Chinsee)
“I love the idea of dialogue, period. It’s where I’ve always gotten my inspiration from: hearing other women speak, their journeys and their paths,” said @hereisgina, who delivered the keynote speech during @sxsw for @createcultivate in partnership with @fossil. For her two panels, Rodriguez chose female empowering, female-led and female entrepreneurs to focus on. Head to WWD.com to read more about her thoughts on Time’s Up, growing up in a family of women and why we “need a girls’ club.” #wwdeye #sxsw (📷: @jgreenery)
Leading luxury brand are shaking things up to keep up with streetwear. Case in point: the arrival of @mrkimjones as artistic director of @diorhomme. Jones, who succeeds @Kris_Van_Assche, is seen as one of the handful of designers who can actually straddle the luxury and streetwear worlds — which could lead to even more changes at established brands. What could this mean for the rest of the menswear landscape? Head to WWD.com to find out what experts predict #wwdfashion (📷: @franckmura)
“It’s like buying groceries. You’re going to buy the best mango, the best mozzarella, the best things. You have to, or others are going to take it all,” said @gabrielahearst on why she uses only the finest fabrics. Last week, Hearst received her first @cfda nomination for Womenswear Designer of the Year, and earlier this month she opened a permanent showroom in Paris. To read @jessiredale’s interview with the designer and find out why this is shaping up to be a big year for her, head to WWD.com. #wwdfashion (📷: @francoisgoize)
“It’s an interesting thing, playing a younger version of your mother. It’s an interesting concept. I adore my mom and love her in every capacity, but it was just something that had never crossed my mind,” says @anniemstarke on playing a young Joan Castleman in “The Wife.” The same role will be played by her mother Glenn Close. Read more about her growing up in the film industry as the daughter of producer John H. Starke and Close and what she has planned for the future #wwdeye (📷: @nataliamantini)
@asics is launching a new streetwear sneaker inspired by its latest ambassador, @steveaoki. The Hyper-Kenzen x Aoki, which will launch at @footlocker stores exclusively tomorrow, is a slip-on style that incorporates the brand’s proprietary Gel technology through beads integrated into the midsole for comfort and endurance. Read the full story on WWD.com.