Women’s fashion and footwear chain Candie's Inc on Friday cut its second quarter earnings estimate citing factors including its buyout of Unzipped Apparel LLC.

The New York-based company said it now expects second quarter earnings of 11-12 cents a share on sales of $49 million compared to its original forecast of 18-22 cents a share on sales of $50m to $52m.

Candie’s said the revision in forecasted earnings for the second half is due primarily to lower than anticipated gross margins in the wholesale footwear business, but also includes seven cents related to the Unzipped Apparel acquisition, increased borrowing costs and retail operations.

It added for the full-year, it sees net revenues in the range of $158m to $163m and earnings per share of 20-24 cents compared to net revenues of $101m and a loss per share of 12 cents for the year–ago period.

Neil Cole, chairman and CEO, stated: "Our second quarter was the best quarter in the company's history. Unfortunately, for the remainder of the year, our gross margin will come under increased pressure due to anticipated promotional activity resulting from the exceptionally challenging retail environment.

"I am confident that we can improve the quality of sales and optimise our merchandise mix by year-end. We have significantly strengthened our balance sheet through our recent financing and continue to gain market share through the expansion of both the Candie's and Bongo brands."