Tapestry Shares Fall on Muted Quarterly Revenue Outlook
The Coach parent company raised its annual earnings forecast for the third time but warned of decelerating revenue growth and margin pressure in the current quarter. While third-quarter sales beat expectations, shares fell 11 percent as investors focused on a projected slowdown for the core Coach brand.
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TAPESTRY INC shares fell 11% after the company forecast subdued quarterly revenue growth and margin pressure across its luxury brands. Coach revenue rose 31% in the third quarter, but the brand expects a deceleration to low-teens growth for the current period. Investors are weighing the raised annual guidance against slowing momentum for the core Coach brand and continued weakness at Kate Spade.
