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Tapestry shares plunge 15% as Coach parent says tariffs will bite into profits

1. Tapestry faces $160 million profit hit from tariffs in fiscal 2026. 2. Earnings per share forecast is slightly below analyst expectations. 3. Sales growth is expected despite tariff-related profit headwinds. 4. Tapestry focusing on cost mitigation strategies amid uncertain market. 5. Major U.S. retailers are set to report earnings soon.

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FAQ

Why Bearish?

The expected profit hit from tariffs presents significant uncertainty for TPR, similar to previous earnings downturns caused by increased operational costs.

How important is it?

The revelation of profit pressures could drive investor sentiment down for TPR, impacting short-term stock performance.

Why Short Term?

The immediate impact of tariff-induced costs on profit margins will likely affect TPR's stock in the coming fiscal year.

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