Liz Claiborne (LIZ) says it is looking at a bigger loss in the second quarter than expected --and investors are pre-emptively punishing the company for it.

The owner of the Kate Spade, Juicy Couture and Lucky brands said in a regulatory filing that it expects its loss in the second quarter to be wider than the loss in the first quarter.

The reasoning behind the larger loss is, however, a mystery.

Reuters

reported that a spokeswoman said the dismal forecast was being driven by the impact of "certain items," and that the company would discuss details during its conference call in August.

The company said "there is still some uncertainty regarding the results for the quarter," which ends on July 4,

Reuters

reported. It cautioned investors to take that uncertainty into account.

And investors heeded this warning, sending shares plunging nearly 20% to $3.24 in afternoon trading.

In the first quarter the company posted a loss of 37 cents a share, missing analysts' expectations of a loss of 33 cents.

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