Retailers Are Awfully Weak This Morning

Another earnings season, another poor performance for retailers.

Shares of Kate Spade & Co KATE were trading lower by nearly 20 percent after the company reported a top and bottom line earnings beat in its second quarter print but slashed its full year fiscal 2016 earnings per share, EBITDA and sales guidance.

Related Link: Jefferies Is Bullish On Handbags, Says Buy Coach And Michael Kors Ahead Of Earnings

Kate Spade is a premium maker of handbags and accessories. The entire sector has been on edge the bast few years as companies like Kate Spade, along with Coach Inc COH and Michael Kors Holdings Ltd KORS are dealing with a rapidly changing industry and shifting consumer tastes - not to mention an uncertain economic outlook that has many perspective buyers holding on to the extra few hundred dollars in cash rather than splurging on a luxury good.

Shares of Coach and Michael Kors were also hard hit Wednesday morning, each down nearly 6 percent.

Business Insider reported nearly a year ago to the day that the designer handbag industry is "losing its luster." Its in-depth report on the declining relevancy of the handbag and apparel market may have been re-confirmed by Kate Spade's Wednesday's earnings print and outlook.

Meanwhile, investors and traders are also heavily selling fashion-related retail and department store names. Shares of Kohl's Corporation KSS, Macy's Inc M and J C Penney Company Inc JCP were all lower by at least 3 percent.

The SPDR S&P Reatial (ETF) XRT was down about 1 percent to $43.39.