Tapestry forecasts full-year profit below estimates on hit from China
2022.08.18 14:29
A handbag is seen in a Kate Spade store, owned by Tapestry, Inc., in Manhattan, New York, U.S., November 19, 2021. REUTERS/Andrew Kelly/File Photo
(Reuters) -Tapestry forecast full-year earnings below estimates after reporting lower-than-expected quarterly revenue on Thursday, as lockdowns in China hurt sales of its designer handbags and apparel in the region.
Major Chinese cities have imposed multiple rounds of COVID-19 restrictions this year following Beijing’s “dynamic zero-COVID” policy of promptly stamping out all outbreaks at a time when much of the world co-exists with the virus.
Tapestry (NYSE:TPR) joins the likes of Gucci owner Kering (EPA:PRTP) SA, Ray-ban maker EssilorLuxottica and Ralph Lauren Corp (NYSE:RL) in flagging a sales hit from China, a key growth market, after these measures left high-fashion companies with piles of unsold stock.
Tapestry forecast fiscal 2023 profit between $3.80 and $3.90 per share, lower than Wall Street expectations of $3.91.
The Coach handbag maker reported total revenue of $1.62 billion for the fourth quarter ended July 2, missing analysts’ average estimate of $1.64 billion, according to IBES data from Refinitiv.
