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Sector Update: Consumer Stocks Paring Earlier Losses; Kate Spade Slammed After Saying Profit-Margin Goals May Be Delayed 1 Year

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WMT -0.08%

MCD +0.01%

DIS -0.21%

CVS +0.42%

KO +0.48%

Consumer stocks were slightly lower today with shares of consumer staples companies in the S&P 500 slipping about 0.4%. Shares of consumer discretionary firms in the S&P 500 were down about 0.1%.

In company news, Kate Spade & Co. ( KATE ) slumped Tuesday following negative comments made by an executive during its Q2 conference call.

KATE shares were down 25.4% at $29.00 apiece, earlier falling to a session low of $28.30 a share.

According to reports, the executive said the apparel company may delay its 2016 profit-margin goals by a year until 2017, saying it's taking longer for the company to ramp up its new Saturday brand.

Earlier today, KATE said its Q2 loss narrowed to $14 million, or $0.11 per share, from a $24 million loss in the year-ago period. Sales jumped 48.7% year over year to $266 million, exceeding the $237.4 million consensus estimate from analysts polled by Capital IQ.

It also raised its guidance for 2014 adjusted EBITDA by $5 million to a new range of $120 million to $130 million.

In other sector news,

(+) SMG, Declares special one-time cash dividend of $2.00 per share. Increases quarterly dividend by 3% to $0.45 per share. Also approves $500 mln stock buyback program.

(-) SFM, Launches secondary offering of 15 mln shares now held by affiliates of Apollo Global Management ( APO ).

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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