Kate Spade & Co (NYSE:KATE) stock was hit hard on Tuesday following the release of its earnings report for the first quarter of 2017.

Kate Spade & Co reported earnings per share of one penny during the first quarter of the year. This is a decrease over its earnings per share of 8 cents from the same time last year. It also didn’t meet Wall Street’s earnings per share estimate of 7 cents for the first quarter of the year.

Revenue reported by Kate Spade & Co during the first quarter of 2017 was $271.23 million. This is down from its revenue of $274.42 million that was reported during the first quarter of 2016. It also failed to reach analysts’ revenue estimate of $299.75 million for the quarter.

Operating income reported by Kate Spade & Co in the first quarter of the year was $6.88 million. The fashion design house reported operating income of $17.71 million during the same period of the year prior.

Kate Spade & Co reported net income of $1.36 million during its first quarter of 2017. The company’s net income from the same time in the previous year was $11.64 million.

Kate Spade & Co also provided a small update on its plans to evaluate strategic alternatives. It said that it won’t be providing guidance due to these talks and also isn’t holding an earnings call or webcast for its first-quarter earnings report. KATE says it won’t provide updates to investors until it has reached a decision on the matter.

Kate Spade & Co considering strategic alternatives comes as several retailers face bankruptcy. The problem is the shift to online shopping, which is causing traffic at physical stores to decline. KATE has a total of 423 stores as of the end of the first quarter of 2017 and it sells its merchandise through several other retailers.

KATE stock was down 5% as of noon Tuesday.