Coach proprietor Tapestry cuts revenue forecast on China lockdown hit
© Reuters. Items are seen in a Kate Spade store, owned by Tapestry, Inc., in Manhattan, New York, U.S., November 19, 2021. REUTERS/Andrew Kelly
(Reuters) -Tapestry lowered its full-year profit forecast on Thursday as fresh lockdowns in major market China hurt sales of its luxury handbags and apparel, sending its shares down 4% in premarket trading.
The company joins other luxury goods makers such as Gucci owner Kering (EPA:) SA and Ray-ban maker EssilorLuxottica in flagging a sales hit from the world’s second-largest economy. Tapestry (NYSE:) said sales in China fell by a mid-teens percentage in the third quarter.
The company forecast fiscal 2022 profit of about $3.45 per share, compared with its prior estimate of between $3.60 and $3.65.
The company’s total net sales rose 13% to $1.44 billion in the third quarter ended April 2, beating analysts’ average estimate of $1.42 billion, according to IBES data from Refinitiv.