By  on August 12, 2014

Shares of Kate Spade & Co. dropped 25.4 percent to $29 as investors put concerns about the company’s margins over satisfaction with its reduced second-quarter loss.

The pullback in Kate Spade stock, centered on liquidations of its Kate Spade Saturday inventory and their negative impact on gross margin, was by far the largest move by any of the 100 equities on the WWD Global Stock Tracker, which declined 0.2 percent to 98.04 for the day.

Other upscale handbag firms had declines, including a 3.2 percent drop for Michael Kors Holdings Ltd., to $77.44, and a 0.6 percent contraction at Coach Inc., to $35.98.

Among other declines was a 4 percent drop for Sears Holdings Corp. to $36.13, a 3.3 percent decline for G-III Apparel Group to $80.03 and a 2.7 percent descent for American Apparel Inc. to 91 cents.

After the U.S. markets closed, American Apparel filed a report with the Securities and Exchange Commission showing that its estimated loss for the second quarter ended June 30 declined to $15 million from a year-ago loss of $38 million while sales were flat at $162 million. The Los Angeles-based company said it was unable to file its quarterly report, or Form 10-Q, on time because of recent changes in the composition of its board.

The strongest gain among tracker stocks came from Pandora A/S, up 8.3 percent to 413 Danish kroner, or $74.15 at current exchange, following its 53.6 percent advance in second-quarter profits and upward revision of its full-year guidance.

Shares of Luen Thai Holdings Ltd. were up 3.3 percent to 2.17 Hong Kong dollars, or 28 cents, followed by Anta Sports Products Ltd., up 2.8 percent to 14.86 Hong Kong dollars, or $1.92, and Inter Parfums Inc., up 2.6 percent to $28.55.

With the results for the day, the WWD Global Stock Tracker has gained in 12 sessions and declined in 13 since its July 8 rollout.

 

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