Stocks fell into the red on Friday after a series of disappointing retail earnings.
The S&P 500 was down 0.22%, the Dow Jones Industrial Average slid 0.16%. The Nasdaq fell 0.11%, reversing gains after hitting an intraday record of 5,346.
In retail earnings news, Gap (GPS) fell 10% after reporting in-line earnings and a drop in revenue over its third quarter. The apparel retailer earned 60 cents a share, as expected, while revenue slipped 1.6% to $3.8 billion. Third-quarter profit declined nearly 18%, while sales dropped for their seventh straight quarter. The company also said it would close 65 stores this year, higher than its originally planned 50 store closings.
Abercrombie & Fitch (ANF) said third-quarter profit tumbled 81% as same-store sales in the period tumbled 6%, more than analysts' expectations of a 4.4% drop. Revenue declined 6% to $821.7 million, falling short of $831.1 million consensus. Abercrombie also warned that it would take a $16 million lease termination charge in its current quarter. The stock tumbled 12%.
Foot Locker (FL) fell despite in-line quarterly sales and better-than-expected profit. The athletic shoe store chain earned $1.17 a share during the quarter, up from 57 cents a share a year earlier and 7 cents above consensus. Gross margins rose to 33.9% from 33.8%, while revenue increased nearly 6% to $1.89 billion. Same-store sales increased 4.7% as expected.
Williams-Sonoma (WSM) reported a mixed third quarter. The homewares retailer earned 79 cents a share, 2 cents above estimates. Sales climbed 1.6% to $1.25 billion, but fell short of expectations by $10 million.