Tapestry wit the biggest daily drop this year 💡

Shares in the well-known American holding company Tapestry (TPR.US), which owns luxury brands, are down nearly 13% before the opening of trading on Wall Street following the publication of its financial results. The company owns brands such as Coach and Kate Spade.

For fiscal year 2026, the company forecasts earnings per share of $5.30–$5.45, below analysts' expectations ($5.49), mainly due to additional import tariff costs of approximately 60 cents per share, which will translate into a margin decline of approximately 230 basis points and a $160 million charge to earnings. Revenue is expected to reach $7.2 billion, above the forecast of $7.12 billion. In the last quarter, Coach sales increased by 13% and Kate Spade sales decreased by 13%; total revenues amounted to $1.72 billion and earnings per share to $1.04, both exceeding expectations. The management board raised the quarterly dividend by 14% to $0.40, payable in September.

Following the publication of the report and forecasts, Tapestry shares are falling in response to lower-than-expected earnings forecasts caused by tariff costs and concerns about the future of the industry. This decline follows a period of strong growth – from the beginning of the year until yesterday, the share price gained approximately 74%. Tapestry remains one of the leaders in the US luxury accessories market thanks to the strong position of the Coach brand and effective pricing policy, but rising import costs and changes in consumer behavior may limit profit growth in the coming quarters.

Tapestry shares are down nearly 13% today, marking the biggest daily decline this year. Interestingly, however, with this scale of decline, the share price is currently retesting the 50-day EMA (blue curve on the chart) for the first time since June.

Source: xStation