Retail stocks slump as Victoria's Secret owner reports dismal sales
Retailers were caught in a widespread selloff on Thursday after L Brands (NYSE:LB), the owner of Victoria’s Secret and Bath & Body Works, reported weaker sales than expected.
The report from L Brands highlighted worries over declining sales and store closures across the retail industry. Shares of L Brands tumbled 13 percent, and other retailers including Sears Holdings (NASDAQ:SHLD) were dragged lower in recent trading.
L Brands said Thursday that net sales in June fell 6% compared with last year during the same period, and same-store sales fell 9%, which is worse than industry analysts had expected.
It was part of a larger route in retail, the worst performing sector on the Standard & Poor's 500 index. Consumer discretionary stocks were down 0.6% on Thursday afternoon, and retailers accounted for six of the 10 top decliners on the S&P 500.
Shares in Sears fell more than 8.3%, and Urban Outfitters (NASDAQ:URBN) shares slid 5.7%.Kohl’s (NYSE:KSS), J.C. Penney (NYSE:JCP) and Macy’s (NYSE:M) each saw declines of 2% or more.
The Associated Press contributed to this report.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LB | LANDBRIDGE CO. LLC | 76.00 | -3.12 | -3.94% |
| SHLD | GLOBAL X FDS DEFENSE TECH ETF USD | 39.32 | +0.09 | +0.23% |
| M | MACY'S INC. | 16.24 | +0.28 | +1.75% |
| JCP | NO DATA AVAILABLE | - | - | - |
| KSS | KOHL'S CORP. | 14.97 | +0.22 | +1.49% |