Kate Spade’s merchandise missteps added to its second-quarter pain

Kate Spade & Co. couldn’t blame all of its second-quarter troubles on promotions, tourism and currency-exchange issues.

The apparel and accessories company said its earnings also took a hit from two problems of its own making: the items introduced in June that customers didn’t want and a failure to stock enough in-demand merchandise and novelty.

Kate Spade shares fell more than 18% on Wednesday after the company lowered its full-year guidance and reported earnings that fell short of the company’s expectations. Same-store sales, including e-commerce, grew 4%, falling far short of the 13.2% FactSet consensus.

See also:Kate Spade shares tumble as earnings fall short

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