Retailers are grappling with excess inventory: Investors are now sounding the alarm on too much inventory buildup, which can mean more costs to warehouse items and markdowns to get products off shelves.
Victoria’s Secret Notes Break Below 80 Amid Selloff in Retailers: Victoria’s Secret 4.625% senior unsecured notes maturing in 2029 fall as much as 2.25 cents on the dollar to 78.25 cents, setting a new intraday record low as investors ditched stocks and bonds tied to apparel and retailers. Shares of the lingerie merchant tumbled as much as 12%.
Clear Channel Notes Slide to Yield 12.5% Following Earnings Miss: Clear Channel Outdoor 7.75% senior unsecured bonds maturing in 2028 fall 1.5 cents on the dollar to 80.5 cents, a record intraday low. The notes have been slumping for the last month, with another leg down since May 10 when the company reported first-quarter revenue that was weaker than expected.
Party City Yield Pierces 20% Amid Downbeat Mood on Retail Sector: Party City Holdings first priority bonds due in 2026 fall as much as 2.13 cents on the dollar to a record low 71.38 cents, briefly pushing the yield above 20% amid spreading gloom on the outlook for the retail sector. The stock didn’t fare any better, dropping as much as 11% on the day and almost 80% so far this year.