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.
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)
@heriethpaul and @gracebol have a moment on the @victoriassecret fashion show 2017. See every look from the runway on WWD.com. Link in bio. (📷: @giovanni_giannoni_photo) #wwdfashion #victoriassecret #VSFashionShow
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia