Retailers’ earnings season has gone from bad to worse, according to a Wall Street Journal commentary. The bleeding intensified last week, with shares of Abercrombie & Fitch plummeting 26 percent on Wednesday, the biggest percentage decline since the company went public. PVH Corp., owner of brands including Van Heusen, Tommy Hilfilger, and Calvin Klein, dropped 10 percent that day, too. On Thursday, women’s wear chain J.Jill was down 53 percent and on Friday, Gap Inc. slid 9 percent. It is hard to miss what all of these retailers have in common: They are mall-based. While retailers posted generally strong numbers in 2018, raising hopes of a retail renaissance, this year has seen a reversion to the pre-2018 trend: department stores and mall-based retailers giving up share to discount stores and e-commerce, according to the commentary. The perceived renaissance now seems to have been largely a function of lean inventories, not an actual increase in demand. Now inventory is high again, and retailers are resorting to promotions, according to the commentary.
