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Retail Shares Descend With Market

Retail shares nosedived on Friday as investors continued to react to gloomy economic news and heightened international tensions, placing an exclamation...

Retail shares nosedived on Friday as investors continued to react to gloomy economic news and heightened international tensions, placing an exclamation point on a week marked by continuing erosion in the equity markets.

The Standard & Poor’s Retail Index sank 3.3 percent to 380.04, closing out the week with a 4.3 percent decline. The Dow Jones Industrial Average tumbled more than 220 points for the day to close down 1.8 percent at 11,841.95, bringing the decline for the week to 3 percent.

The broader S&P 500 fell 1.9 percent to 1,317.93.

In the department store sector, Kohl’s Corp. tripped 4 percent to $43.39, Sears Holdings Corp. fell 3.2 percent to $74.75, Macy’s Inc. declined 3.6 percent to $20.91 and J.C. Penney Co. Inc. fell 1 percent to $36.88. Saks Inc. saw a 1.2 percent loss to end the day at $12.32, while Nordstrom Inc. decreased 3.3 percent to $36.88.

Even the more resilient discounters felt the pinch. Retail giant Wal-Mart Stores Inc. dropped 2.5 percent to $56.26, while rival Target Corp. slid 3.5 percent to end the day at $49.98. Off-price leader TJX Cos. Inc. lost 1.9 percent to end the week at $32.47.

Among women’s specialty retailers, Chico’s FAS Inc. sank 5.5 percent to $6.21, Charming Shoppes Inc. dropped 4.7 percent to $5.04, AnnTaylor Stores Corp. fell 2.7 percent to $25.56 and Coldwater Creek Inc. plunged 6.2 percent to $5.71.

Gap Inc. fell 2.4 percent to close at $17.45, while Limited Brands Inc. dropped 4 percent to $18.21.

In the teen space, Pacific Sunwear of California Inc. declined 7 percent to $9.18, Guess Inc. dropped 3.3 percent to $39.81, Buckle Inc. dropped 2.6 percent to $47.95 and Abercrombie & Fitch Co. fell 2 percent to $67.45.

One of the few gainers was Lululemon Athletica, which saw a 3.3 percent jump in shares to end the day at $28.40. Talbots Inc. increased the same amount to $13.74 following numerous executive appointments during the week.

Vendors also logged large declines for the day, with Warnaco Group Inc. off 4.1 percent to $46.76, Jones Apparel Group Inc. down 3.7 percent to $14.96 and VF down 3.5 percent to $69.74. Polo Ralph Lauren Corp. and Liz Claiborne Inc. were down a relatively modest 2.4 percent and 1.7 percent, respectively, to $64.41 and $15.99.

 

Bank woes and soaring oil prices were the predominant triggers of the sharp declines.