Coronavirus causes retail stocks to suffer biggest monthly drop ever
March 24, 2020
The XRT retail exchange-traded fund has fallen 33 percent in March, its worst month ever, with some companies including Guess, Kohl’s and Macy’s experiencing share price declines of more than 60 percent. Highly-leveraged clothing and specialty retailers are experiencing the most difficulties as many close their doors due to the coronavirus outbreak. “It’s very concerning. It means that simply they’re not able to pay their bills, and so they’re tapping credit lines, they’re tapping any means possible to try and stay in business,” said Quint Tatro, president of Joule Financial. “Then we have debt defaults and then ultimately the equity follows. So I think that the market is telling us that a lot of these companies are in trouble if we don’t return to some sort of normalcy very quickly.”
Recent News
Peloton CEO Steps Down and Layoffs Begin
Peloton, the popular fitness technology company, has announced significant changes in its leadership and organizational structure.
California Restaurants Must Start Eliminating Special Surcharges
Starting July 1, California is changing the game for restaurant bills.
T-Mobile Now Owns Ryan Reynolds-Backed Mint Mobile
The deal is worth upwards of $1.35 billion.
Chipotle Is Giving Away Over $1 Million in Burritos to Healthcare Workers
In acknowledgment of the tireless contributions of healthcare workers, Chipotle Mexican Grill has announced a notable gesture of appreciation: the distribution of 100,000 free burrito e-cards.