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What: Shares of clothing-maker Fifth & Pacific
So what: The parent of labels such as Kate Spade and Lucky Brand said weakness in its Juicy Couture line was the main reason for the lowered forecast. Countering the slower Juicy Couture sales, Kate Spade and Lucky Brand have outperformed expectations, with Kate Spade posting an expected 21% increase in direct-to-consumer comps.
The recent cancellation of MTV's "Jersey Shore" may be an apt metaphor for Juicy Couture, as the brand was perhaps best-known as a favorite of Snooki and the show's other starlets. Labels like these are notoriously trendy, and it may prove difficult to resurrect the brand after such a flashy endorsement fades.
Now what: The stock managed to make a mild recovery over the course of the day, bouncing back nearly 10% from early session lows so investors seem to be taking the news in stride. Still, this company has lost piles of money in each of the last three years, and looks like it could be headed for the red once again. Juicy Couture drying up is far from its only problem.
Want to see if FNP can turn things around? Just add the company to your Watchlist by clicking right here.