A downgrade on Coach Inc. and investor reaction to a weaker earnings outlook from Michael Kors Holding Ltd. sent both stocks down 5 and 23 percent, respectively, at midday trading. Shares of Fossil, which has a licensing deal with Michael Kors, also fell 7 percent to $70.28.
Kors — along with many other companies doing business abroad — has been negatively impacted by a strong dollar, which is forcing many firms to lower their outlooks. Meanwhile, shares of Tiffany & Co. were up 12 percent to $95.68 as the company delivered better-than-expected results despite headwinds from a strong dollar.
Major indices such as the Dow Jones Industrial Average and the S&P 500 were both up midday, about 0.7 percent.