Shares of Coach and Kate Spade parent company Tapestry plummeted 16% on Thursday after the company warned that higher tariffs will hit its profits by $160 million in the full year. Despite strong sales growth, CFO Scott Roe said the company is facing unexpected profit headwinds from tariffs.
Roe pointed to the end of the de minimis exemptions, which allowed items worth $800 or less to enter the US duty-free, as a major factor. However, Tapestry still expects revenue to grow in the fiscal year, with sales projected at around $7.2 billion, representing low single-digit growth compared to the prior year.
The company is taking steps to mitigate higher costs from tariffs, including moving manufacturing to other countries and reducing prices on some items. CEO Roe emphasized that the company’s conservative outlook has nothing to do with its business trajectory, citing strong demand acceleration in the current quarter.
Major US retailers will share their latest sales updates and outlooks next week, including Walmart, Home Depot, and Target.
Source: https://www.cnbc.com/2025/08/14/tapestry-tpr-q4-2025-earnings-.html