Tapestry offers downbeat outlook and its stock tumbles

Upscale handbag and fashion maker Tapestry offers downbeat earnings, sales outlook

NEW YORK -- Tapestry Inc.'s shares lost nearly a quarter of their value Thursday after the upscale handbag and fashion company said that it would have an unexpected drop in profit and revenue in the current quarter.

Tapestry's stock ended Thursday down $5.55, or 22%, at $19.45.

During a conference call, Tapestry's CEO Victor Luis said the company needs more time to revive the Kate Spade brand.

"We acknowledge that there are opportunities and are addressing those areas with a sense of urgency," he said.

Kate Spade had sales of $332 million in the fiscal fourth quarter, compared to $312 million in the prior year. Global sales at stores opened at least a year fell 6%.

Tapestry reported fiscal fourth-quarter earnings of $148.9 million, down from $211.7 a year ago.

On a per-share basis, the company said it had profit of 51 cents. Earnings, adjusted for costs related to mergers and acquisitions and non-recurring costs, were 61 cents per share. That matched expectations of Wall Street analysts polled by Zacks Investment Research.

The company posted revenue of $1.51 billion in the period, which fell short Street forecasts. Nine analysts surveyed by Zacks expected $1.53 billion.

For the year, the company reported profit of $643.4 million, or $2.21 per share. Revenue was reported as $6.03 billion.

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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on TPR at https://www.zacks.com/ap/TPR