Why These Stocks Are Tumbling Today

Fossil Plunges On Disappointing Results

Shares of Fossil Group Inc (NASDAQ:FOSL) are trading down by about 28% on Wednesday afternoon, driven by the announcement of poor first-quarter results and an even weaker second-quarter guidance. The fashion accessories company posted EPS of $0.12 on revenue of $659.8 million, missing the Street’s consensus by $0.03 and $6.8 million, respectively. Sales declined by 9% year-over-year, while the operating margin tumbled more than 71% to 2.2%. For the second quarter, management said it expects earnings of $0.00 to $0.15 per share, considerably lower than what analysts projected – $0.58 per share.

At the end of the fourth quarter, 22 funds tracked by Insider Monkey, held shares of Fossil Group Inc (NASDAQ:FOSL), having amassed 12.6% of its total shares outstanding.

Michael Kors Also Suffering From Fossil Results

Michael Kors Holdings Ltd (NYSE:KORS) was also impacted by Fossil’s (and Macy’s) poor results, since Kors’ brand represents roughly half of Fossil’s licensed business, which declined by doubled digits in the fiscal first quarter. Shares of Michael Kors are down by approximately 12% on Wednesday.

A total of 27 funds among those we track were long Michael Kors Holdings Ltd (NYSE:KORS) by the end of 2015. One firm that had disclosed a long stake in both Kors and Fossil as of December 31, was Cliff Asness’ AQR Capital Management, which declared holding 2.77 million shares of Michael Kors and 158,550 shares of Fossil.

Investors Unhappy With Laredo’s Public Offering

Finally, there’s Laredo Petroleum Inc (NYSE:LPI), which has lost roughly 3.3%, following the announcement of a public offering of 9.5 million common shares of the company, “subject to market and other conditions.” The company said it plans to use the proceeds from the offering to pay back debt acquired under its senior secured credit facility.

Laredo Petroleum Inc (NYSE:LPI) saw the number of supporters in our database decline by 10% over the fourth quarter to 18. However, John H. Scully’s SPO Advisory Corp maintained its stake, comprising 17.13 million shares or $136 million in stock.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.