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In Brief: Stocks Sink… Chanel’s Longer Deal

Wall Street anxiously anticipated dismal January same-store sales, which will be released later in the week, by sending retail shares into free fall on Monday.

STOCKS SINK: Wall Street anxiously anticipated dismal January same-store sales, which will be released later in the week, by sending retail shares into free fall on Monday. The WWD Composite Stock Index fell 2.5 percent to 893.14, while the S&P Retail Index plunged 3.1 percent to 411.05. The Dow Jones Industrial Average dropped 0.9 percent to 12,635.16, while the broader S&P 500 fell 1.1 percent to close at 1,380.82. Women’s apparel companies were the biggest drag on the sector. Talbot’s Inc. made the New York Stock Exchange’s list of biggest decliners, sinking 12.5 percent to $8.26, while Coldwater Creek Inc. fell 18.1 percent to $5.76, Charming Shoppes Inc. declined 15.1 percent to $5.85, Chico’s FAS Inc. decreased 5.8 percent to $10.04 and Christopher & Banks Corp. dipped 5 percent to $12.28. AnnTaylor Stores Corp. closed down 5.3 percent to $23.92. Limited Brands Inc. fell 5.2 percent to $18.32, while Citi Trends Inc. decreased 10.7 percent to close at $13.49.

This story first appeared in the February 5, 2008 issue of WWD.  Subscribe Today.

CHANEL’S LONGER DEAL: Luxottica Group said Thursday that it has renewed its license to produce and distribute eyewear for Chanel for three years, renewable for another three years. The relationship between the two companies dates back to 1999. “This partnership is extremely rewarding for both firms,” said Antonio Miyakawa, executive vice president at Luxottica. Miyakawa said the license still offers “great growth potential.” The executive said Chanel is “one of the three most important” licenses for Luxottica, but declined to be more specific about the size of the business. Bruno Pavlovsky, president of Chanel’s fashion activities, said the partners would pursue “an even more luxurious and differentiated strategy.”