Tapestry forecast sluggish annual revenue growth on Thursday, overshadowing its better-than-expected quarterly profit and sending its shares down by as much as 16.9% in morning trading to a six-month low of $127.78.

The conservative outlook reflects ongoing weakness at its Kate Spade brand along with broader spending slowdowns in North America due to macroeconomic uncertainty. Prior to the decline, Tapestry shares had risen roughly 20% this year.

Key performance metrics and quarterly statistics include:

• Quarterly Sales: Increased 8.9% from a year earlier to $1.88 billion, matching analyst expectations.
• Adjusted Profit: Fourth-quarter earnings reached $1.32 per share, beating projections of $1.28 per share.
• Coach Brand Growth: Sales grew 14% year-over-year, supported by targeted promotions and demand for collections like the Tabby and Belted Ergo shoulder bags.
• Kate Spade Performance: Quarterly sales dropped 7% on a constant currency basis.
• International Growth: Revenue jumped 28% in China and rose 19% in Europe compared to the prior year, while North America revenue grew 7% on a constant-currency basis.

To revitalize Kate Spade, the brand appointed Scottish fashion designer Jonathan Saunders as creative director last month as part of a turnaround strategy aimed at improving product design and visual identity. GlobalData Managing Director Neil Saunders noted that investors want a faster turnaround at Kate Spade to strengthen near-term financials.

Looking ahead, Tapestry anticipates annual revenue between $8.4 billion and $8.5 billion, with the midpoint trailing LSEG estimates of $8.46 billion. Additionally, the company expects earnings per share for the fiscal year ending June 2027 to range between $7.80 and $7.90, compared to analysts' estimates of $7.84 per share.