JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
Investing.com - Shares of Tapestry (NYSE:TPR) plunged by more than 16% in premarket U.S. trading on Thursday after the fashion group unveiled income estimates for its current fiscal year that underwhelmed Wall Street expectations.
The Coach-owner also flagged that it incurred charges that decreased its pre-tax income for the April to June quarter by $872 million, adding that these were linked to a decline in both current and future expected cash flows due to a tariff-driven increase in operating costs.
Tapestry, which sources much of its goods from countries like Vietnam and the Philippines that have been hit by elevated U.S. tariffs, warned that the duties would also lead to a headwind of about 230 basis points -- or $160 million -- in its fiscal 2026 income margin.
"[T]his outlook reflects the timing of policy implementation, product sell-through, and mitigating actions underway," Tapestry said in a statement, although it noted that it these "incremental tariffs and duties over time."
Against this backdrop, the firm said it expects to post full-year adjusted earnings per share of $5.30 to $5.45, compared to Bloomberg consensus estimates of $5.49.
Revenue, meanwhile, is tipped be up to $7.2 billion, versus projections of $7.12 billion, thanks partially to a tailwind from foreign currency effects. Accessible luxury brands, such as Tapestry, have been gaining some momentum as the tariffs fuel broader economic uncertainty that is leading some shoppers -- particularly younger ones -- to shy away from high-end items and search for cheaper alternatives.
Fourth-quarter net sales rose by 8.3% compared to a year ago to $1.72 billion, topping estimates. Adjusted per-share profit came in at $1.04.