CPRI - Gap Nordstrom earnings drag clothing retail sector down

Both The Gap (GPS -21.7%) and Nordstrom (JWN -28.5%) plummeted after Q3 earnings came in well below expectations and stocks for other clothing retailers reacted poorly as the S&P Retail ETF (NYSEARCA:XRT) trades down 1.61% after it recently hit the $100 mark. Dillards (DDS -8.6%), Macy's (M -5.0%), and Kohl's (KSS -3.5%) all trade down mid-single digits despite delivering earnings beats earlier this month and raising guidance for the year. In an analyst note on Nordstrom, UBS said that the retail environment could become more challenging next year as promotional activity increases and consumer spending shifts towards services. Other clothing retail stocks in the red: Tapestry (TPR -4.6%), Foot Locker (FL -4.0%), Urban Outfitters (URBN -3.2%), TJX Companies (TJX -0.9%), Capri Holdings (CPRI -2.1%), American Eagle (AEO -4.5%), Abercrombie & Fitch (ANF -5.9%), Ralph Lauren (RL -2.6%)

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Gap, Nordstrom earnings drag clothing retail sector down