A $2.9 Billion Wipeout Ensues When Retailers Lose the Thread
- Abercrombie, Capri, Canada Goose declines underscore pessimism
- Companies face array of obstacles, from weather to tariffs
A customer enters an Abercrombie & Fitch Co. store in San Francisco.
Photographer: David Paul Morris/BloombergFor apparel retailers, the plot has to unfold just right for investors to buy into the narrative. And by the market’s reaction Wednesday, they clearly didn’t stick to the script.
A trio of companies posted historic stock declines Wednesday: Abercrombie & Fitch Co., Canada Goose Holdings Inc. and Michael Kors owner Capri Holdings Ltd., together erasing about $2.9 billion in market capitalization. For Abercrombie, weakening sales cast doubt on the company’s affirmation that it’s in the midst of a sustained rebound. Capri trimmed its sales outlook for the year amid foreign currency weakness and lower revenue from wholesale. At Canada Goose, a slowdown sparked concerns that its era of rapid growth may be coming to an end.