Tapestry Stock Slumps as Coach, Kate Spade Parent Cuts Outlook on Tariff Costs

• Fashion handbag maker Tapestry slashed its full-year forecast because of the costs on new U.S. tariffs.

• The company lowered its fiscal 2026 earnings per share estimate as it anticipates a $160 million hit from tariffs.

• The news offset better-than-expected fourth-quarter results, driven by demand for Coach bags.

Tapestry (TPR) shares slumped 15% Thursday after owner of fashion brands gave a weaker-than-expected outlook as it warned it would take a significant hit from new tariffs.

The parent of the Coach, Kate Spade, and Stuart Weitzman brands expects fiscal 2026 earnings per share (EPS) of $5.30 to $5.45, which includes the “negative impact of incremental tariffs and duties of over $0.60.” The midpoint of the range was below the $5.42 consensus projection of analysts surveyed by Visible Alpha.

The company added that gains in operating margin would be “offset by a negative tariff and duty impact of approximately 230 basis points,” or $160 million.

The news came as Tapestry reported it set a fourth-quarter revenue record of $1.72 billion, and posted adjusted EPS of $1.04. Both exceeded estimates.

The gains were driven by sales of Coach, which jumped 14% year-over-year to $1.43 billion. Kate Spade sales dropped 13% to $252.6 million, and sales at Stuart Weitzman fell 10% to $45.5 million.

Shares of Tapestry closed at an all-time high yesterday, and even with today’s selloff they’re up nearly 50% year-to-date.

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