Tapestry forecasts muted annual sales as Kate Spade struggles; shares tumble

Tapestry's fourth-quarter adjusted profit of $1.32 per share topped estimates of $1.28 per share.

Quarterly sales rose 8.9% to $1.88 billion from a year earlier, in line with analysts' estimates.

Tapestry's North America revenue rose 7% on a constant-currency basis, compared with 8% growth a year earlier and about 20% in the prior quarter, reflecting a broader slowdown in spending amid growing macroeconomic uncertainty.

Revenue from China jumped 28% and Europe rose 19% compared with a year ago.

Tapestry executives said on a post-earnings call that they will continue investing in Coach stores and marketing to drive customer acquisition.

The company forecast annual revenue in the range of $8.4 billion to $8.5 billion, with the midpoint slightly below estimates of $8.46 billion, according to data compiled by LSEG.