Kate Spade Shares Slide After Earnings Miss

Kate Spade & Co. shares slid 2% in Tuesday premarket trading after the accessories company reported first-quarter 2017 earnings that missed expectations. The earnings announcement was unexpected, and comes amid reports that it's in talks to be acquired by Coach Inc. Net income was $1.36 million, or 1 cent per share, down from $11.6 million, or 9 cents per share, for the same period last year. The FactSet consensus was 7 cents per share. Sales for the quarter were $271.2 million, down from $274.4 million last year and below the $299.0 million FactSet consensus. Same-store sales fell 2.4% for the quarter, and were down 8.1% excluding e-commerce. The FactSet consensus was for a 3.4% increase. Due to the ongoing review of strategic alternatives, the company did not provide guidance and won't host a conference call. It reiterated that the review process does not guarantee a transaction or other strategic result. Kate Spade shares are up nearly 4% for the year so far while the S&P 500 index is up nearly 5% for the period.