Kate Spade & Co (NYSE:KATE) stock took a sharp dive today after the company announced its guidance for 2016.
Kate Spade has announced that its outlook for 2016 now has revenue falling between $1.37 billion and $1.40 billion. The company is also expecting earnings per share to range from 63 cents to 70 cents. Wall Street is expecting KATE to report revenue of $1.41 billion and earnings per share of 78 cents for the year.
The rest of Kate Spade’s earnings report for the second quarter of 2016 saw the company bring in revenue of $320 million. This is an increase over the $281 million it reported during the same time last year and beat out analysts’ estimates of $318.55 million.
Kate Spade’s income for the second quarter of 2016 was $25 million, or 19 cents per share. This is up from the $9 million, or 7 cents per share, that it reported in the second quarter of 2015. Wall Street was looking for KATE to report earnings per share of 14 cents for the quarter.
Kate Spade’s gross profit for the second quarter of 2016 was roughly 60% of its revenue. This is a slight decrease from the 61% it reported during the same time last year.
Selling, general & administrative expenses were $157 million for this quarter. This up from the $154 million reported in the second quarter of 2015.
“Several factors contributed to our second quarter results falling short of our expectations, the most impactful of which are the retail landscape and continuing tourist headwinds,” Craig A. Leavitt, CEO of Kate Spade, said in a statement.
KATE stock was down 21% as of Noon Wednesday.
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