Looks from the William Rast fall 2016 collection.

Although Sequential Brands Group Inc. met adjusted third-quarter earning per share and beat analysts’ expectations for revenues, investors were not happy with the lowered guidance for the full year.

Investors sent shares of Sequential down 32.5 percent to $4.88 at 1 p.m. in Nasdaq trading.

For the three months ended Sept. 30, net income fell 52.3 percent to $1.3 million, or 2 cents a diluted share, from $2.7 million, or 6 cents, a year ago. On an adjusted basis, diluted EPS was 12 cents. Net revenues rose 82.6 percent to $42.0 million from $23.0 million. Wall Street analysts’ consensus estimates were EPS of 12 cents on revenues of $39.9 million.

For the full year ending Dec. 31, the company kept its revenue guidance of between $155 million and $160 million, but lowered net income to between $7.7 million and $11 million. The original forecast on July 28 when the company posted second-quarter results projected $12.7 million to $14.6 million. The company said the reason for lowered forecasts was due to costs associated with its headquarter lease, which it initially thought would be partially offset, and augmented investment in operating resources in certain areas of the firm.

Yehuda Shmidman, chief executive officer, said, “Our business activation team is executing and our portfolio brand health is solid, driven by strong contributions from our core brands Jessica Simpson, William Rast and Heelys, as well as from our recently acquired brands including Joe’s Jeans, Martha Stewart, Chef Emeril and Gaiam.”

Shmidman said investments in strategic areas for long-term growth include building the firm’s international momentum, expanding its digital presence and investing in the development of products and in support of key partnerships.

Looking ahead to the year ending Dec. 31, 2017, the company said it expects revenue at between $175 million and $180 million and GAAP net income of between $22.1 million and $25.4 million. The company said it expects to end 2017 with $600 million of net debt.

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