Worldwide fashion stocks suffered less than U.S. and European equity markets, with the WWD Global Stock Tracker’s 0.9 percent decline modest in comparison to decreases of more than 1 percent for major indices.
The Dow Jones Industrial Average shed 272.52 points, or 1.6 percent, for its biggest decline since July, and Paris’s CAC 40 endured the worst of the declines in Europe with a 77.38 point, or 1.8 percent, drop-off. Asian markets led off the day somewhat better, with Tokyo’s Nikkei 225 down 0.7 percent to 15,783.83 but Hong Kong’s Hang Seng Index up 0.5 percent to 23,422.52.
The tracker’s 98.94 finish matched its Aug. 18 close. The last finish below that level was the 98.06 reading on Aug. 15. Since its introduction on July 8, its lowest point was a 96.92 close on Aug. 7.
The steepest decline among tracker stocks belonged to Quiksilver Inc., off 3.6 percent to $1.61, followed by Matsuya Co.’s 3.3 percent descent to 1,360 yen, or $12.50 at current exchange.
Ann Inc. shares slid 3.2 percent to $37.91 on the day that it disclosed plans for its first stores in Mexico, with three Loft units planned for the country before the end of the year. Kohl’s Corp. shares pulled back 2.9 percent to $57.84 while Kate Spade & Co. and Avon Products Inc. notched 2.8 percent declines to close at $26.69 and $11.34, respectively.
Outside the 100-company tracker sample, shares of Christopher & Banks Corp. pulled back 26 percent to $6.73 after the company warned that its third-quarter sales would land at between $114 million and $118 million, below the $122 million to $124 million range earlier provided.
“We are operating our business with the assumption that the current environment will remain challenging and promotional activity will continue to be aggressive, creating continued pressure on sales and margins,” said LuAnn Via, president and chief executive officer, adding that the specialty retailer had seen improvements in sell-throughs of fashion merchandise and “continued strong margins in core offerings.”
The 17 tracker stocks coming out of the difficult trading session with increases were led by Sears Holdings Corp, up 4.1 percent to $30.31, and Samsonite International SA, ahead 3.2 percent to 25.80 Hong Kong dollars, or $3.33. Trinity Ltd. advanced 2.9 percent to 2.16 Hong Kong dollars, or 28 cents.
Coty Inc. shares moved ahead 2.3 percent to $16.30 after the company offered to purchase the Bourjois cosmetics brand from Chanel for 15 million Class A Coty shares, representing about 4.2 percent of Coty’s outstanding shares. Chanel indicated it would engage in negotiations with Coty.
Lotte Shopping Co. shares rose 1.8 percent to 317,000 Korean won, or $295.63.