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Tapestry, the parent company of Coach and Kate Spade, saw its stock plummet after announcing that tariffs will reduce its fiscal year 2026 profits by $160 million, despite strong sales growth. The company projects earnings of $5.30 to $5.45 per share, below analyst expectations. While sales are expected to reach $7.2 billion, the impact of higher import duties and the end of de minimis exemptions significantly affected the profit forecast. Despite strong demand, Tapestry is adopting a conservative approach to manage the tariff impact through diversified manufacturing and operational efficiency.

Prepared by Christopher Adams and reviewed by editorial team.