Retail shares dipped 1.6 percent Monday as investors fretted over the state of the economy and the timing of the recovery.
The S&P Retail Index fell 5.07 points to 315, as the Dow Jones Industrial Average had its largest one-day drop since April, giving up 2.4 percent, or 200.72 points, to close at 8,339.01.
Retail investors are placing their bets during a time of great upheaval in the industry. Abercrombie & Fitch Co. decided to shutter its 29-door Ruehl division last week, but J.P. Morgan equity analyst Brian Tunick said more changes could be in store for the firm, which has suffered severe comparable-store sales declines.
“There’s a big change in thinking [that is] happening at [Abercrombie] as persistence of some of the worst comps in retail is pushing the company to challenge the status quo,” Tunick said after meeting with management last week.
“We would have never expected to hear the words ‘oversaturated’ and ‘money-losing stores’ from this company, and with 210 leases expiring over the next two years — 20 percent of the store base — [the firm] could be closing stores or negotiating for better lease terms,” said Tunick in a research note. “We expect most potential closures in its A&F concept, which we think could shrink by close to 100 stores — from 354 today.” Shares of Abercrombie fell 1.3 percent Monday to $25.67.
Also, the jewelry sector continues to get clobbered in the current environment. Big-name firms such as Whitehall, Crescent and Friedman’s have already gone into the retail graveyard. On Monday, jewelry wholesaler Henry Dunay Designs Inc. filed for Chapter 11 bankruptcy court protection in Manhattan. In the petition, the firm said it had between $1 million and $10 million in assets, as well as $1 million to $10 million in liabilities. The firm sells its designs at high-end department stores.
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)