Retail stocks fell 1.2 percent Tuesday, logging their third consecutive decline as investors gauged China’s efforts to moderate its economic policies and fretted over a weaker-than-expected quarterly performance from aluminum maker Alcoa Inc.
The S&P Retail Index lost 5.04 points to 408.60 and the Dow Jones Industrial Average dipped 0.3 percent, or 36.73 points, to 10,627.26, as stocks in the commodity and industrial sectors followed Alcoa’s lead down.
International markets declined, with the CAC 40 down 1.1 percent to 4,000.05 in Paris, the FTSE 100 off 0.7 percent to 5,498.71 in London and the Hang Seng Index down 0.4 percent to 22,326.64 in Hong Kong. However, in Tokyo, the Nikkei 225 picked up 0.8 percent to 10,879.14.
On Tuesday, Xinhua, China’s official news service, said the People’s Bank of China would increase the amount of money banks need to hold in reserve, reducing the funds available to lend. This could tamp down rising prices, but also cool economic expansion. China cut the reserve requirement four times in late 2008 to stimulate growth as the global financial crisis bore down. Chinese exports broke a 13-month string of declines and rose 17.7 percent last month.
China has been a bright spot in the global economy, generating continued expansion, but much of the growth has come from $586 billion in government spending on infrastructure projects such as roads and railways.
Among the U.S. retail decliners Tuesday were Zale Corp., off 11.5 percent to $3.15; The Bon-Ton Stores Inc., 9.4 percent to $10.06; Coldwater Creek Inc., 9 percent to $4.84; New York & Company Inc., 4.3 percent to $4.26; Pacific Sunwear of California Inc., 4.2 percent to $3.92, and Nordstrom Inc., 4 percent to $36.81. Caché Inc. fell 9.5 percent to $4.29 after cutting its fourth-quarter profit outlook late Monday.
On a day when losers heavily outnumbered gainers, among the vendors seeing decreases were Liz Claiborne Inc., down 8.5 percent to $5.37; Jones Apparel Group Inc., 3.5 percent to $16.30, and Polo Ralph Lauren Corp., 2 percent to $83.82.
From overseeing America’s fastest-growing speciality retailers to codifying cool, WWD talked to the women who are leading the way for the future of beauty. Check out our Instagram Stories to see how these women built today and are creating tomorrow. (📸: @hannah_khymych) #wwdbeauty
For @laperlalingerie's spring 2018 show, the brand chose to host their event at @thevenetianmacao. With Chinese megastars @bingbing_fan and @hubing in attendance, La Perla debuted a rock ‘n’ roll-inspired collection. The show marked the start of Sands Macao Fashion Week, which runs from October 19 to 24 — the city’s first such event. Pictured here are models backstage with glimmering eyes. #wwdfashion (📷: Cheuk-Yin To)
Trending for spring 2018: top stitch design. Gone are the days of stitch just for seams — designers are using the once-minimal detail to create strong decorative elements. (📷: Paola Testa; Styled by @andrew_shang) #wwdfashion
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)