Coach parent Tapestry’s tariff hit hurts annual profit target, shares slump
By Anuja Bharat Mistry
(Reuters) -Tapestry, on Thursday, the following annual profit estimate, because the coach handbag manufacturer has higher tariff costs and the company’s shares reduce the shares of the company by 12% in pre -market transactions.
The company estimates the latest warning of the negative effects of tariffs on luxury retailers, including a 160 million dollar hit from the US import duties, the power-owner Kering and the French luxury group LVMH.
The unpredictable trade policies of the Trump administration shook the consumer feeling and broke the worldwide businesses and supply chains.
Gblelen makes its coach and Kate Spa handbags primarily in countries such as Vietnam, Cambodia, Philippines and India.
“Tariffs are expected to have a more negative impact than expected over the 2026 fiscal year. However, the financial year may still want to be careful in the financial year.” He said.
Kate Spade owner, according to the data compiled by LSEG, expects the financial 2026 earnings per share to be in the range of $ 5.30 to $ 5.45 compared to the estimates of $ 5.49 per share. The estimation is about 60 cents incremental accuracy of tariffs.
The company’s shares increased by about 74% this year behind the popularity of Koç Toyby and Empire bags this year, which helped the company’s strong income for the year.
The pressure of adding bag jewelry attracts a thousand years and gene z customers in regions such as North America, China and Europe.
“The brand focuses on the comprehensive marketing of the brand through the right channels to reach high -quality, trendy handbags and younger buyers, despite the wider decline in luxury, the demand for Koç brand is permanent,” He said.
The company sold analysts’ 1.68 billion dollars of estimates of $ 1.72 billion, defeating the estimates of $ 1.72 billion.
The fourth quarter, which ended on June 28, was $ 1.04 per share and won 2 cents.
(Reporting by Anuja Bharat Mistry in Bengaluru;
