Tapestry lowered its full-year profit forecast on Thursday as fresh lockdowns in major market China hurt sales of its luxury handbags and apparel, sending its shares down 4 percent in premarket trading.

The company joins other luxury goods makers such as Gucci owner Kering SA and Ray-ban maker EssilorLuxottica in flagging a sales hit from the world’s second-largest economy.

Tapestry said sales in China fell by a mid-teens percentage in the third quarter.

The company forecast fiscal 2022 profit of about $3.45 per share, compared with its prior estimate of between $3.60 and $3.65.

The company’s total net sales rose 13 percent to $1.44 billion in the third quarter ended April 2, beating analysts’ average estimate of $1.42 billion, according to IBES data from Refinitiv.

By Uday Sampath; Editor: Aditya Soni

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Tapestry Lifts Annual Forecast as Luxury Demand Booms

Tapestry Inc raised its full-year revenue and profit forecast as consumers splurge on luxury handbags and apparel in the United States and Europe, boosting the Kate Spade owner’s shares 3 percent in premarket trade.