Disappointing sales and earnings from Macy’s Inc. weighed on retail stocks today.
Shares of the department store fell 4.5 percent to $46.33 after it reported a 0.8 percent second-quarter sales decline and earnings per share of 72 cents, significantly below the 79 cents analysts projected and the company’s first miss since 2007.
Macy’s decline helped push the S&P 500 Retailing Industry Group down 1.5 percent, or 12.72 points, to 831.91. The Dow Jones Industrial Average fell 0.7 percent, or 113.35 points, to 15,337.66.
The declines at Macy’s don’t bode well for the rest of the earnings season since the firm was expected to be a bright spot in a generally tough quarter.
Also posting stock losses for the day were Aéropostale Inc., down 3 percent to $12.76; PVH Corp., 2.5 percent to $128.58; Urban Outfitters Inc., 2.4 percent to $40.77, and The Bon-Ton Stores Inc., 2.3 percent to $15.07.
In Europe, markets closed mostly up, as a report showed the euro area’s economy emerged from a record-long recession in the second quarter. Both the CAC 40 in Paris and the FTSE MIB in Milan gained 0.5 percent, to 4,114.20 and 17,463.46, respectively, while the DAX in Frankfurt increased 0.3 percent to 8,438.12. London’s FTSE 100 lost 0.4 percent to 6,587.43.
The euro traded at $1.31 against the dollar and the pound was worth $1.51.
Retail and luxury stocks had a mixed day, with the strongest performances seen from Brunello Cucinelli, up 3.8 percent to 23.50 euros; LVMH Moët Hennessy Louis Vuitton, 1.4 percent to 142 euros; and Burberry, 1.2 percent to 15.93 pounds.
Among those losing ground were Marks & Spencer, down 1.1 percent to 4.67 pounds, and Safilo, which dipped 0.8 percent to 13.80 euros.