NEW YORK — Apparel stocks were caught in the undertow of wider market declines Wednesday following an unexpected decision by OPEC to cut production, raising the possibility of higher energy costs.

The Dow Jones Industrial Average suffered a triple-digit tumble, falling 150.53 points, or 1.6 percent, to land at 9,425.51, while the Nasdaq shed 3.1 percent of its value, or 58.02 points, to close at 1,843.70. The Standard & Poor’s Retail Index settled at 353.36, down 6.62 points, or 1.8 percent.

In the specialty retail segment, notable decliners included Gap Inc., which decreased 3.3 percent to close at $17.70; Limited Brands Inc., down 2.7 percent to $15.37; and Christopher & Banks Corp., whose shares plummeted 7 percent to finish at $25.20. C&B, which reported higher second-quarter earnings on Tuesday, was also one of the day’s most active retail apparel stocks, as volume spiked nearly four times above average to 1.7 million shares.

Department stores generally held up better. May Department Stores Co. saw its shares tick down 0.8 percent to settle at $24.98, while Federated Department Stores Inc. skidded 2 percent to $42.73. However, J.C. Penney Co. bucked the larger trend, adding 5 cents, or 0.2 percent, to finish up at $22.95.

Mass merchants weren’t immune to the downward drift on Wall Street either. Mighty Wal-Mart Stores Inc. saw its shares tick down 1.7 percent, to finish trading at $56.62 and Target Corp. retreated 1.5 percent to $38.89. Hybrid retailer Kohl’s Corp. stumbled 3.9 percent to end trading at $53.20 on a day when the firm’s volume was more than twice average.

Among manufacturers, Polo Ralph Lauren Corp. saw its shares fade 4.9 percent to end at $25.94; Tommy Hilfiger Corp. dropped 0.3 percent to close at $12.32; and VF Corp. declined 1.8 percent to finish at $39.16. Kellwood Co. and Jones Apparel Group both declined 2.4 percent, to $34 and $30.46, respectively.

To access this article, click here to subscribe or to log in.

To Read the Full Article

Tap into our Global Network

Of Industry Leaders and Designers

load comments
blog comments powered by Disqus