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Tapestry Stock Slumps as Coach, Kate Spade Parent Cuts Outlook on Tariff Costs

1. Tapestry lowered fiscal 2026 EPS forecast due to new U.S. tariffs. 2. Anticipated $160 million tariff impact offsets record fourth-quarter revenue. 3. Coach brand sales surged 14% to $1.43 billion despite overall declines. 4. Shares fell 15% but have risen nearly 50% year-to-date. 5. EPS estimate now $5.30 to $5.45, below analyst expectations.

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FAQ

Why Bearish?

The negative earnings outlook due to tariffs heavily impacts investor sentiment. Historical perspectives show similar tariff announcements have caused significant stock price declines in retail sectors.

How important is it?

Tariff impacts on TPR's earnings significantly influence investor expectations and stock valuation.

Why Short Term?

The tariff's immediate financial effects are anticipated in the current fiscal period, likely influencing stock price quickly.

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