Company News

Tapestry sees current-quarter profit below estimates on Kate Spade, tariff woes

FILE PHOTO: Tapestry Inc. logo and trading information are displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., June 13, 2018. REUTERS/Brendan McDermid

(Reuters) - Tapestry Inc TPR.N on Tuesday forecast lower-than-expected profit for the current quarter, citing weak demand at its millennial-focused Kate Spade brand and the impact of U.S. tariffs on Chinese imports.

Shares of Tapestry erased gains from earlier in the morning, dropping 7% before the opening bell.

Chief Financial Officer Joanne Crevoiserat, on a post earnings conference call with analysts, said she expects same-store sales at Kate Spade to fall at a high-single-digit rate.

The handbag maker projected earnings between 95 cents per share and $1 per share, well below analysts’ estimates of $1.09, according to IBES data from Refinitiv.

Earlier, the company beat quarterly profit estimates on demand for its high-margin Coach handbags and apparel in China and Europe.

Reporting by Nivedita Balu in Bengaluru; Editing by Bernard Orr