PETITION

The retail bloodbath continues.

Here's a fun nugget of info in today's retail bloodbath: Among the 20 worst S&P 500 performers ytd, 7 are retailers: Nordstrom shares are down 30%, Macy’s 29.5%, Walgreens 25.3%, Kohl’s 23%, Foot Locker 21.6%, CVS 20%, Gap 19.3% ... so far this yearhttps://t.co/rS7ubzFDbb
— Lauren Thomas (@laurenthomasx3) May 29, 2019

Earlier this week, Abercrombie & Fitch Co. ($ANF) joined Ralph Lauren Corp. ($RL), Gap Inc. ($GPS), and Calvin Klein ($PVH) by ditching “flagship” stores situated in expensive parts of town. The stock got crushed on earnings. But the “Peace Out Flagship Square Footage” club didn’t stop growing there. To the contrary, it is expanding. Rapidly.

On Wednesday, J. Crew announced that it plans to shutter 20 flagship and outlet stores. “Why might it be trying to shrink its footprint,” you ask? Good question. And the comps give you all the answers you need. While total revenue rose 7% across the enterprise, J.Crew sales fell 4% with comps down 1%. In contrast, Madewell sales rose 15% and comps rose 10%.

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