Retail shares struggled to lock in advances throughout the day Monday and ended trading just slightly below their starting point.
The S&P Retail Index was down less than 0.1 percent, closing the session at 228.76. While retail stocks spent nearly the entire day in positive territory before dipping into the red, the major indices, battered by uncertainty about financial stocks and federal economic policy that wasn’t eased by Merck & Co. Inc.’s agreement to buy Schering-Plough Corp., weaved back and forth between gains and losses before ending the day on the down side. By the time the closing bell sounded, the Dow Jones Industrial Average was off 1.2 percent at 6,547.05, the S&P 500 down 1 percent at 676.53 and the Nasdaq Composite 2 percent lower at 1,268.64.
The largest decline registered among the stocks tracked by WWD came from AnnTaylor Stores Corp., which fell 17.3 percent to close at $2.82, establishing a new all-time low of $2.41 earlier in the day. This follows its 38.5 percent drop on Friday, when the retailer reported a larger-than-expected fourth-quarter loss and plans for 46 additional store closures. Battling reduced consumer spending, and especially hard hit by the decline in consumption of career apparel in light of the brutal employment environment, the company has seen its stock drop by more than half in the last three trading sessions.
On the other side of the ledger, General Growth Properties Inc. enjoyed a 5-cent, or 15.2 percent, increase to 38 cents after The Wall Street Journal reported that the property group is formally asking holders of $2.3 billion of its bonds for nine months to work out its debts to avoid bankruptcy.
Based on what he described as a “peak of negativity,” Brean Murray, Carret & Co. analyst Eric Beder lowered his 2009 earnings projections for Bebe Stores Inc., Coldwater Creek Inc., Guess Inc., G-III Apparel Group Ltd., Maidenform Brands Inc., Perry Ellis International Inc., True Religion Apparel Inc. and Warnaco Group Inc., as well as his 2010 estimates for Bebe, True Religion and Warnaco and his price targets for Bebe, G-III and Perry Ellis. However, he reiterated his “buy” ratings for Bebe, Guess, G-III, Perry Ellis, True Religion and Warnaco.
He said “there is light at the end of the tunnel,” noting that in the second half of 2010 companies should benefit from lower transportation and production costs, “materially lower” inventories, benefits from cost cuts and far easier comparisons.
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