Retail shares were mired in red on Wednesday as oil prices soared to more than $140 a barrel.
The S&P Retail Index pulled back 2.4 percent to close at 379.34, and the Dow Jones Industrial Average lost 205.99 points, or 1.7 percent, to close at 12,083.77. The broader S&P 500 also fell 1.7 percent to 1,335.49.
Teen retailer Buckle Inc., which has remained relatively stable during the economic downturn, declined 7.5 percent to $45.13, which was 4 cents above its low for the day but 12.3 percent less than its 52-week high of $51.45 on May 16.
J. Crew Group slid 6 percent to close at $33.20, Guess Inc. was down 7 percent to $39.79, American Apparel Inc. sank 7.7 percent to $5.90, American Eagle Outfitters Inc. dropped 3.3 percent to $15.95 and Aéropostale Inc. fell 3 percent to close at $32.42.
In the department store sector, Macy's Inc. lost 4.4 percent to $20.86, Sears Holdings Corp. declined 2.5 percent to $80 and Kohl's Corp. dropped 3.1 percent to end the day at $42.59.
Wal-Mart Stores Inc. lost 2.1 percent to $58.52, while rival Target Corp. slid 3 percent to $51.61. Among off-pricers, TJX Cos. Inc. was off 3.1 percent to $31.28 and Ross Stores Inc. slipped 1.7 percent to $36.17.
Talbots Inc. was one of the only gainers in the specialty sector, increasing 3.7 percent to $8.62, after management said on Wednesday that majority stockholder Aeon Co. Ltd. agreed to provide the retailer with a $50 million unsecured subordinated working capital term loan credit facility that will mature on Jan. 28, 2012. This will supplement current capital lines of credit of $165 million and increase the retailer's total working capital borrowing capacity to $215 million. Interest on the outstanding principal will be the London Interbank Offered Rate, known as LIBOR, plus 500 basis points.
"While we believe we had in place sufficient liquidity to fund the turnaround of our business, this new credit facility will provide us with an additional level of assurance and even greater flexibility to weather the current uncertainty in the credit markets," said Talbots' president and chief executive officer, Trudy Sullivan.
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
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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)