Kate Spade shares were down as much as 26% on Tuesday after the company warned on its second quarter earnings conference call that sales could slow in the second half of the year, according to Bloomberg’s Lindsey Rupp and Selina Wang.
Shares of the retailer, which initially rallied after reporting earnings and revenue for the second quarter that missed expectations, plunged intraday during the company’s conference call, which began at 10:00 am ET.
Rupp and Wang reported that the company said sales would increase at a “high-single” digit rate in the second half of the year, down from a 30% gain in the first half.
The company’s profit margin goals may also be delayed by a year due to the slower than expected ramp up of Kate Spade’s “Saturday” brand.
In the second quarter, Kate Spade earned $US0.05 per share, more than the flat quarter expected by analysts, on sales that totaled $US265.99 million, more than the $US237.83 million that was expected.
The company also said the wind-down of its Juicy Couture brand is “substantially complete,” with the company now reporting that segment as discontinued operations.
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