NEW YORK — Retail stocks took a nasty spill Monday after weekly sales reports signaled a rough September.
It was a tough day for the markets overall with the Standard & Poor’s retail index off 10.71 points, or 3.6 percent, to 283.76. Other indices dropped less dramatically: the Dow Jones Industrial Average sank 113.87 points, or 1.4 percent, to close at 7,872.15, and the broader Standard & Poor’s 500 slid 11.69 points, also 1.4 percent, to 833.70. The Nasdaq Composite staggered 36.16 points, or 3 percent, to 1,184.93 — its first closing below 1,200 since September 1996.
Wal-Mart Stores Inc. said after last week, its total comparable-store sales for September should be near the low end of its targeted 4 to 6 percent uptick. Growth in average ticket exceeded the growth in traffic for the week.
Federated Department Stores Inc., on its Web site, said September comps "will be at best toward the lower end of our expected 3 to 5 percent increase." This goal, though, may still prove too high as the firm’s results "may fall slightly below that range." Sears, Roebuck & Co. said its same-store sales continued to slide in the high single-digit range, while J.C. Penney Co.’s department stores continued on their path toward a flat to a slightly higher comp showing for the month.
Broadline retailers watching their shares descend included Sears, down $2.69, or 6 percent, to $42.12; Dillard’s, $1.44, or 5.9 percent, to $23.15; Nordstrom, $1.05, or 5.1 percent, to $19.55; May Department Stores, $1.20, or 4.6 percent, to $24.74; Federated, $1.29, or 3.7 percent, to $33.50; Kohl’s, $2.10, or 3 percent, to $67.45 and J.C. Penney, 1 cent, or 0.1 percent, to $18.25.
Discounters were also pinched with Target down $1.70, or 5.1 percent, to $31.96 and Wal-Mart off $2.10, or 3.8 percent, to $52.60.
Specialty stores enduring retreating stock prices included Chico’s, down $1, or 5.6 percent, to $17; Urban Outfitters, $1.38, or 5.5 percent, $23.59; Talbots, $1.56, or 4.8 percent, to $31.20; Ross, $1.94, or 4.9 percent, to $37.56; Abercrombie & Fitch, $1.07, or 4.6 percent, to $22.16; Pacific Sunwear, $1.03, or 4.3 percent, to $22.76; Wet Seal, 50 cents, or 4.3 percent, to $11.05, and Bebe, 57 cents, or 4 percent, to $13.63."The stock market is having a negative impact on consumer psychology," which, in turn, curtails spending and further erodes the markets, said A.G. Edwards & Sons analyst Robert Buchanan. "The concern here is really that the cycle continues unabated and Christmas ends up even weaker than we’d thought going into this."
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews
@prada is introducing a new project at its men’s fall 2018 show this Sunday: “Prada Invites.” The fashion house invited four celebrated creative minds – @ronanaerwanbouroullec, Konstantin Grcic, @herzogdemeuron and @rem.koolhaas – to each create a unique item with its iconic nylon material. The designs will be unveiled on the runway show, which will take place at the company’s warehouse in Viale Ortles 25. #wwdfashion #mfwm (📷: @martinocarrera)
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion