NEW YORK (TheStreet) -- Shares of Kate Spade & Co (KATE) were sinking, down 7.8% to $30.02 in midday trading Thursday, despite topping earnings estimates for the quarter as the company plans to wind-down some of its businesses, according to the Wall Street Journal.
For the first quarter, the company reported a loss of $55.2 million, after reporting a profit a year prior.
The company earned 3 cents per share, higher compared to a profit of 2 cents per share analysts were expecting, according to analysts polled by Thomson Reuters.
Revenue came in at $255.3 million for the period, also topping analysts' forecasts of $244.9 million.
For the full year, Kate Spade guided for revenue of between $1.2 billion to $1.27 billion.
New York City-based Kate Spade designs and markets accessories and apparel principally under two global, multichannel lifestyle brands: kate spade new york and Jack Spade.
Separately, TheStreet Ratings team rates KATE SPADE & CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate KATE SPADE & CO (KATE) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity, robust revenue growth, expanding profit margins and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."