It was a gloomy morning of earnings for the already-beleaguered retail sector and stocks are selling off sharply midday.
The S&P 500 consumer discretionary index fell about 1.5% at 11:35 AM ET (16:25 GMT).
Investors punished retail stocks last week, even those that posted strong results like Walmart (NYSE:WMT).
And after this morning’s earnings misses money flew out of shares.
L Brands (NYSE:LB) was the biggest drag on the index, plunging about 12%.
The company slashed its annual dividend in half to $1.20 as its Victoria's Secret brand reported a decline in sales.
But it beat its third-quarter expectations as a result of strong numbers from Bath and Body Works, which it also owns.
Other notable decliners were Target (NYSE:TGT), which fell about 11% after it missed on earnings, quarterly sales and same-store sales, and Kohl’s (NYSE:KSS), which fell about 9%. Kohl’s increased its full-year profit forecast, but the range still fell below analysts’ expectations.
One of a handful of stocks that bucked the trend was Best Buy (NYSE:BBY), which gained about 4% after beating on the top and bottom lines.
