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

(Reuters) - Tapestry Inc (NYSE: TPR) 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.

(Reporting by Nivedita Balu in Bengaluru; Editing by Bernard Orr)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Wells Fargo upgrades S&P 500 Industrials to favorable
• Wells Fargo downgrades S&P 500 tech sector to neutral
• Top airline stocks to watch as fuel volatility tests sector outlook