Wall Street tumbled on Wednesday amid more fears about the financial sector and rising oil prices, and retail stocks bore a major share of the damage.
The Standard & Poor's Retail Index, down more than 2 percent for most of the day, ended the session with a 1.9 percent decline to 385.05. The Dow Jones Industrial Average fell below 12,000 for the first time since March during trading before recovering to close down 1.1 percent to 12,029.06. The S&P 500 dropped 1 percent to 1,337.81.
Wal-Mart Stores Inc. was among the most active stocks on the New York Stock Exchange, falling 1.7 percent to $57.67 as more than 22 million shares changed hands. Rival Target Corp. dipped 3.1 percent to end the day at $50.85.
The department store sector saw some of the biggest declines. Macy's Inc. dropped 4.7 percent to close at $21.02, J.C. Penney Corp. sank 5 percent to $36.72, Sears Holdings Corp. decreased 2.5 percent to $77.91 and Kohls Corp. lost 2.8 percent to $43.46.
High-end retailers also took a hit. Saks Inc. declined 2.4 percent to $12.20, while Nordstrom Inc. fell 2.9 percent to $33.95.
Action sports retail Zumiez Inc. plunged 7.1 percent to $20.56, teen retailer Abercrombie & Fitch Co. declined 2.3 percent to $67.91 and American Eagle Outfitters Inc. gave up 4.1 percent to end the day at $16.20. Gap Inc. was down 2.8 percent to $17.49 and Limited Brands Inc. slid 1.6 percent to $18.58.
One of the few retailers to see gains was The Children's Place, which increased 1.4 percent to $37.59. Another exception was Wet Seal Inc., which rose 1.2 percent to close at $4.96.
Polo Ralph Lauren Corp. slid 2 percent to $64.75, Liz Claiborne Inc. fell 1.5 percent to $16.10 and Phillips-Van Heusen Corp. lost 3.2 percent to $40.65. Warnaco Group Inc. gave back 2.4 percent to close at $47.44 and VF Corp. receded 1.7 percent to $72.11.
Quiksilver Inc. managed a 2.8 percent increase to close at $9.65, but Under Armour surrendered 5.2 percent, ending the day at $30.51.
Investors pulled back after FedEx Corp. warned that earnings would fall short of expectations and Morgan Stanley posted a 51 percent plunge in second-quarter earnings.
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye