Calvin Klein fall 2016 Global Ad Campaign.

G-III Apparel Group Ltd.’s shares fell 20.7 percent Tuesday after the company reported that its sales decreased in the second quarter and lowered its outlook.

G-III said the net loss for the quarter was $1.3 million, or negative 3 cents a diluted share, down from net income of $12.5 million, or 27 cents, a year ago. This included roughly $3 million, or 4 cents a share, in professional fees related to the pending acquisition of Donna Karan. That puts adjusted earnings at 1 cent, a big miss from the FactSet estimate for earnings of 17 cents.

Sales for the three months ended July 31 decreased 7 percent to $442.3 million from $473.9 million a year earlier. The FactSet estimate was for sales of $485 million, another big miss. The company’s shares fell throughout the day, finally closing down sharply at $33.14, losing $8.63 in the end.

“We believe our wholesale outerwear opportunity is intact for the full year despite a reduction by retailers in early season orders as they shifted their focus toward a greater degree of in-season replenishment and reorder business,” said chief executive officer Morris Goldfarb. He added that the softness in the retail environment had somewhat abated and the firm believed that forecast cool weather trends should be in its favor.

That positive outlook didn’t translate into G-III’s guidance for the full year, which was lowered. The new net sales forecast for the full fiscal year is $2.48 billion, a drop from the previous guidance of $2.56 billion. The Capital IQ estimate is for $2.56 billion.

Net income is forecast to be in the range of $102 million to $106 million, a significant drop from the previous range of $120 million to $125 million. Earnings per share were also slashed for the year to a range of $2.16 to $2.26 from $2.55 to $2.65 per diluted share.

Looking ahead to the third quarter, G-III is guiding to an improvement over last year’s sales. The forecast for net sales is about $940 million, which is better than last year’s $910 million, but a far cry from FactSet’s estimate for sales of $1.0 billion.

“The fundamentals of our wholesale apparel and accessories business remain excellent. This is significant as it aligns with the substantial growth opportunities we have with Calvin Klein, Tommy Hilfiger and Karl Lagerfeld,” Goldfarb said. “It is also consistent with our planned strategy for the acquisition of Donna Karan which will be to develop and build categories of Donna Karan women’s apparel and accessories throughout the world. We believe that this set of opportunities supports an eventual doubling of our annual revenues to roughly $5 billion in five years.”

G-III stock has fallen 38 percent over the past year and over the last four weeks had begun to recover slightly. Today’s selloff will probably erase those gains.