Tapestry forecasts weak annual sales amid 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.

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.

The company expects earnings per share for the year ending June 2027 to be in the range of $7.80 to $7.90, with the midpoint above analysts' estimates of $7.84 per share.