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.
EXCLUSIVE: @tomford is opening its first-ever beauty store. The boutique, which opens November 20 in London’s Covent Gardens, was designed with the over-the-top glam Ford is known for. Read the full story on WWD.com, link in bio. #wwdbeauty #wwdnews (📷: Simon Wagner) #TomFordBeauty
New York-based DJ @harleyvnewton threw a party to celebrate the holiday collection of her dress and pajama line @hvn at the Ladurée Beverly Hills. It Girls @katebosworth, @rashidajones and more joined in on the fun, which included cocktails, croque monsieur sandwiches and a photo booth. #wwdfashion (📷: Owen Kolasinski/BFA.com)
For the holidays, @Burberry partnered with 20-year-old artist @blondeymccoy on a series of three outdoor murals in downtown Manhattan. The murals are McCoy’s interpretation of a Christmas eve party, the idea of charity and the spirit of family. His third mural, pictured here, is the most personal. The image depicts McCoy’s grandparents and father in London’s Trafalgar Square in the Seventies. “My work often features lots of sentimental objects.” #wwdeye
For spring 2018, designers applied bold colors and cartoonish motifs on everything from sneakers and belts to key chains. See all the top men’s accessories trends on WWD.com. #wwdtrends (📷: George Chinsee; Prop Styling by @rnasti; Market Editor: @luiscampuzano)
The @dior-sponsored @guggenheim international gala pre-party has a history of drawing cool-girl musical acts to serenade the crowd –– and last night was no exception. @haimtheband performed songs both new and old, and lured a star-studded audience with the likes of Rebecca Hall, Kate Mara, Mamoudou Athie and more. #wwdeye (📷: @lexieblacklock)
In a partnership between the @metopera and the @englishnationalopera, “Marnie” was born. The opera, with costumes sponsored by @mrporterlive, is an adaptation of the 1961 thriller by Winston Graham. Arianne Phillips, who created the costumes, is no rookie: She’s styled Madonna for her tours and created costumes for a myriad of films in the past. Read WWD’s interview with Phillips, where she talks about her inspiration for the opera’s costumes on WWD.com #wwdfashion
@barneysnyc took a different approach to their holiday windows this year. Instead of Christmas decor, Barneys tapped @thehaasbrothers to tell a story of positivity, gratitude and inclusivity via heartwarming silliness and humor. “It’s about kids and it’s about coming together and being family and loving each other,” said Simon Haas. #wwdfashion (📷: @joshuascottphoto)
Beauty influencer @kandeejohnson makes her foray into hair care with a collaboration with @ogx_beauty — making it the first time that OGX has teamed up for a product creation. The collab includes shampoos and conditioners in three scents. At 39 and a mom, Johnson is a different profile than the emerging social media stars, but is considered one of the pioneers of the digital beauty influencer world. Read WWD’s interview with her on wwd.com, including the strangest beauty product she’s ever tried #wwdbeauty