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

PUBLISHED THU, AUG 14 202512:35 PM EDT
Melissa Repko
@IN/MELISSA-REPKO
@MELISSA_REPKO

KEY POINTS
• Shares of Coach and Kate Spade parent Tapestry fell on Thursday after it said tariffs will hurt its profits.
• The company said the higher duties will total $160 million for the full year.
• Yet CFO Scott Roe said consumer demand hasn’t slowed, and has even accelerated so far in the current quarter.

Shares of Coach and Kate Spade parent Tapestry plunged Thursday after the company said tariffs will bite into its profits even as sales grow.

The handbag, shoe and accessory maker said costs from higher duties will total $160 million for its coming fiscal year and drag on its profits. It said it expects full-year fiscal 2026 earnings of $5.30 to $5.45 per share, while analysts polled by FactSet were looking for $5.49.

On the company’s earnings call, Chief Financial Officer Scott Roe said sales trends have been strong. Yet he said the company is “facing greater than previously expected profit headwinds from tariffs and duties, with the earlier than expected ending of de minimis exemptions being a meaningful factor.”

Along with raising tariffs on imports from many countries, President Donald Trump suspended the de minimis rule, which allowed items worth $800 or less to enter the U.S. duty-free.

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