Retail Stocks Hammered After Disappointing Results, Failed Merger
The retail sector was getting hammered Wednesday, after Office Depot Inc. and Staples Inc. called off their merger and several retailers reported disappointing results. The SPDR S&P Retail ETF dropped 3.4% to a seven-week low, with 95 of its 97 components losing ground. The biggest loser was Office Depot's stock, which plunged 39% to a three-year low on volume that was already about seven times the full-day average. Staples shares cratered 17%. The third-biggest decliner was Macy's Inc.'s stock , which tumbled 11% to a near four-year low on more than triple the average volume after the department store chain slashed its earnings outlook, citing continued weakness in consumer spending for apparel and related categories. Elsewhere, Fossil Group Inc.'s stock plummeted 29% after a profit and sales miss, which also weighed on Michael Kors Holdings Ltd. shares , which slumped 12%. Shares of Ascena Retail Group Inc. , the parent of apparel retailers including Dress Barn Inc., Ann Inc. and Charming Shoppes Inc., shed 7.6%. The top gainer in the retail sector ETF was the nemesis of brick-and-mortar retailers, Amazon.com Inc., which shares rose 1.2%.
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