Retail shares dropped 2.8 percent Friday and nearly 12 percent for the week as sighs of relief about the passage and signing of the economic bailout bill were drowned out by concerns about job losses and the ongoing credit crisis.
Stocks headed upward early Friday in anticipation of a rescue deal but began their descent as lawmakers took up the legislation in the early afternoon. The Standard & Poor’s Retail Index initially rose 2.1 percent but fell throughout the second half of the day, landing at 331.88, 2.8 percent below its Thursday close and 11.7 percent below last Friday’s final tally.
The Dow Jones Industrial Average followed a similar trajectory, rising 3 percent in the morning before ending the day at 10,325.70, down 157.47 points or 1.5 percent. Its decline for the week was 817.43 points, or 7.3 percent.
Declines might have been even steeper without the bailout package’s success after the Labor Department reported that the U.S. economy suffered a larger than expected loss of 159,000 jobs in September, its largest downturn in more than five years.
Among the stores underperforming the retail index were Dillard’s, down 8.9 percent to $11.06; Pacific Sunwear, down 8.8 percent to $5.70; Urban Outfitters, down 8.4 percent to $26.55; American Eagle Outfitters, down 8.3 percent to $13.63; Stein Mart, down 8.2 percent to $3.47; Nordstrom, down 7 percent to $23.62, and Saks, down 6 percent to $8.05.
Vendors’ declines were generally smaller, although G-III Apparel Group, Oxford Industries, Perry Ellis International and Polo Ralph Lauren had declines of more than 5 percent for the day.
For more, see Monday’s issue of WWD.