Fashion
Tapestry plummets with tariff costs weighing on profit outlook
By
Bloomberg
Published
August 14, 2025
Tapestry Inc.’s annual outlook for a key profit metric missed analysts’ forecasts due in part to tariffs, a sign that Wall Street is still adjusting to the full cost of duties for US companies.
The owner of Coach and Kate Spade said it’s expecting earnings per diluted share between $5.30 to $5.45 in the current fiscal year. That would be a 4% to 7% increase versus the prior year. Analysts in a Bloomberg survey were expecting the profit metric to reach $5.49.
The difference likely lies in tariffs. Tapestry’s EPS outlook includes a negative impact of 60 cents from higher duties, the company said in a statement Thursday. It’s not clear that Wall Street has fully accounted for those costs.
Shares of Tapestry fell 17% in premarket trading. The stock had gained about 74% this year through Wednesday’s close. That hit tariffs represents about $160 million in extra costs in the current fiscal year, Chief Financial Officer Scott Roe said in an interview.
The “new information” on tariffs, he said, will have a “significant” effect in the current fiscal year. Still, Tapestry has “strong confidence in our ability to mitigate the impact of tariffs over time.” The handbag maker’s outlook for the year is “prudent given the backdrop,” Roe added.
Tapestry is forecasting revenue of nearly $7.2 billion in the current fiscal year that’s expected to end in June, slightly above analysts’ expectations of $7.12 billion. That excludes sales from shoe brand Stuart Weitzman, which Tapestry sold after it didn’t generate much revenue. That figure would be a mid-single-digit percentage increase in sales versus the prior year, the company said.
Offloading Stuart Weitzman will enable Tapestry executives to spend more time and resources on increasing sales at Coach and turning around Kate Spade. Revenue at Coach rose 13%, excluding currency fluctuations, and fell 13% at Kate Spade in the most recent quarter that ended on June 28.
“Coach outperformance continues,” Tapestry Chief Executive Officer Joanne Crevoiserat said in the interview. “We’re well ahead of the industry and we’re doing that at exceptional margins.” Sales at Coach have accelerated in the current quarter, she added. At Kate Spade, Crevoiserat said, “the work to reset the brand is underway.”
Coach was listed as the fifth hottest fashion brand as of June, according to the closely watched Lyst Index. Its Tabby and Brooklyn bags are top sellers and have been spotted on celebrities, while its cherry bag charm is a popular and less expensive purchase for shoppers.
Most of the brands at the top of the Lyst Index are European fashion houses such as Miu Miu, Loewe, Prada and Moncler. Coach and Ralph Lauren, at No. 11, are among the few US names on the list and have been able to successfully compete with more expensive European luxury labels even as the two companies have consistently raised prices in recent years.
Both brands’ prices are cheaper than many of their European peers, which makes their high-end products more accessible to a wider range of shoppers, helping to boost sales, executives have said.
The brands’ popularity “suggest a healthy outlook to support market-share gains and operating margin via full-price sales, even amid increased price sensitivity, low consumer confidence and tariff risk,” Bloomberg Intelligence analysts Deborah Aitken and Andrea Ferdinando Leggieri wrote in a recent research note.
China will step up building a higher-level China-Vietnam community with a shared future that carries strategic significance, Chinese President Xi Jinping said while holding talks with visiting Vietnamese President To Lam.
China and Vietnam are accelerating efforts to navigate bilateral trade towards a more balanced and sustainable course.
President Xi Jinping recently held talks with visiting Vietnamese President To Lam.
During the visit, Vietnamese Minister of Industry and Trade Le Manh Hung called for a restructuring of production, trade and supply chains alongside stronger investment cooperation.
Xi said both countries should work together in their modernisation drive, accelerate the alignment of development strategies and prioritise infrastructure connectivity.
While meeting Chinese Minister of Commerce Wang Wentao during the state visit, Vietnamese Minister of Industry and Trade Le Manh Hung called for a restructuring of production, trade and supply chains alongside stronger investment cooperation.
Wang said both sides should focus on implementing the high-level common perceptions, including raising bilateral trade turnover to $500 billion in future.
Hung urged China to expand imports of Vietnamese goods, broaden the list of products eligible for tariff preferences and further open its market. He also called for the mutual recognition of quarantine results for agro-forestry-fishery products, facilitation of Vietnamese exports via cross-border e-commerce, and expansion of Vietnam’s trade promotion offices across Chinese localities, according to a Vietnamese news agency.
China will continue to support Vietnam in setting up additional trade promotion offices, following those already established in Chongqing, Hangzhou and Haikou, Wang responded.
China also expressed readiness to support Vietnam’s stronger exports through cross-border e-commerce, encouraging greater visibility of the Vietnam National Pavilion on Chinese e-commerce platforms beyond JD.com to better promote Vietnamese products to Chinese consumers.
China has consistently been Vietnam’s largest trading partner and second-largest export market, while Vietnam continues to be China’s biggest trading partner in the Association of Southeast Asian Nations (ASEAN).
Fibre2Fashion News Desk (DS)
British actors Simone Ashley and Tom Blyth star alongside models Alva Claire, Babacar N’Doye and Sacha Quenby and a cast of synchronised swimmers and divers.
Burberry’s High Summer 2026 campaign captures Britain’s nostalgic lido culture through a sunlit film featuring Simone Ashley and Tom Blyth.
Blending heritage check with pastel tones, the collection spans swimwear, relaxed tailoring, raffia bags and lightweight layers, evoking effortless, poolside summer style.
Directed by Francis Plummer, the campaign reflects a warm, communal British summer mood.
The campaign film is directed by Francis Plummer and shot by photographer Ryan McGinley. The cameras move from loungers to diving boards, catching mid-air dives and friends stretched out in the hazy afternoon light. Before long, the best spots by the pool are claimed with a Burberry towel. Summer has begun. The film is underscored by the TONE remix of ‘Beating’ by Tirzah.
‘A lido holds a particular kind of nostalgia for the British. The moment the sun comes out, we make the most of the weather. We wanted to bring to life a warm summer’s day spent in and around the water’s edge with friends.’ said Daniel Lee Chief Creative Officer, Burberry.
Key styles
The High Summer 2026 collection features the Burberry Check in heritage-inspired sand beige and pastel shades of aubergine purple and cornflower blue.
The iconic Burberry Check bikini is the beach essential, alongside matching swimsuits and men’s swim shorts trimmed with check.
Poolside separates include tops, skirts and shirts cut from cotton voile, plus cover-up dresses woven with a tonal Burberry Check and deckchair-inspired stripes. Ruffled trims and ties at the neckline capture the floaty, effortless feel of the collection. Festival
tank tops in ribbed cotton jersey are trimmed with check straps, while looks are wrapped in lightweight wool silk scarves.
For men, collared shirts and shorts are tailored to relaxed lines and finished with fresh interpretations of the Burberry Check, from textural weaves to intricate embroidered designs. The co-ord set is crafted from lightweight cotton poplin printed with a playful seahorse pattern in honeysuckle pink.
The classic cotton piqué polo shirt comes in a spectrum of vivid and neutral colours. Burberry Check is subtly placed at the placket and trims the collar of T-shirts in soft cotton jersey.
Lightweight hooded jackets are ideal for cooler evenings and unexpected showers, the new-season designs woven in aubergine purple and cornflower blue check.
In shoes, the new Knight Runner sneakers offer a streamlined, low-profile shape for summer. Sandals are elevated in the form of the whipstitched leather Baez and check-trimmed suede Urchin styles, while Burberry Check slides and Pavilion sandals are made for the beach.
Lightweight Margate bags are handcrafted in Madagascar from locally sourced raffia palm leaves, dyed in signature sand beige Burberry Check. Accessories include crocheted bucket hats and wraparound sunglasses, designed to shield from the sun.
Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged.
Fibre2Fashion News Desk (JP)
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