Tapestry sees current-quarter profit below estimates on Kate Spade, tariff woes

(Reuters) – Tapestry Inc (TPR.N) on Tuesday forecast lower-than-expected profit for the current quarter, citing weak demand at its millennial-focused Kate Spade brand and the impact of U.S. tariffs on Chinese imports. Shares of Tapestry erased gains from earlier in the morning, dropping 7% before the opening bell. Chief Financial Officer Joanne Crevoiserat, on a post earnings conference call with analysts, said she expects same-store sales at Kate Spade to fall at a high-single-digit rate. The handbag maker projected earnings between 95 cents per share and $1 per share, well below analysts’ estimates of $1.09, according to IBES data from Refinitiv. Earlier, the company beat quarterly profit estimates on demand for its high-margin Coach handbags and apparel in China and Europe.

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