default-output-block.skip-main
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Coach Owner Tapestry Slashes Profit Forecast in Volatile Market

The owner of Kate Spade and Coach missed both its own and analysts’ expectations in the latest quarter and cut its guidance.
Coach's Fall/Winter 2017 campaign | Source: Courtesy
By
  • Bloomberg

NEW YORK, United States — Tapestry became the latest consumer-facing company to sound a wider alarm, citing "an increasingly volatile macroeconomic and geopolitical backdrop" as it missed both its own and analysts' expectations in the latest quarter and cut its guidance.

The owner of Coach and Kate Spade projects earnings per diluted share in the range of $2.55 to $2.60 this fiscal year, down from the $2.75 to $2.80 it saw previously.

The company is competing with Capri Holdings, formerly known as Michael Kors, to build the American answer to Europe's luxury conglomerates. So far, traction has been slow: Coach same-store sales rose 1 percent globally in the second fiscal quarter, slightly missing analyst expectations.

China is becoming an increasingly important market for Tapestry. It’s hedging concerns about Chinese spending abroad by going directly to shoppers on their own turf, where it says it’s seeing “traction” driven by domestic demand.

Kate Spade remains a work-in-progress after years of excessive flash sales trained shoppers to expect lower prices. Global same-store sales for the Kate Spade brand tumbled 11 percent in the latest quarter.

Shares fell as much as 11 percent as of 6:57 am before the start of regular trading in New York. They’d climbed 16 percent this year through Tuesday’s close, outpacing the S&P 500.

By Kim Bhasin; editor: Anne Riley Moffat.

© 2022 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Financial Markets
A financial lens on the ebb and flow of the fashion sector.


Kanye and Adidas, Johnny Depp and Dior: celebrity marketing can be a minefield as well as a goldmine — and social media has raised the stakes.



view more

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
The Business of Beauty - Global Forum
© 2023 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy and Accessibility Statement.
The Business of Beauty - Global Forum