Tapestry Shares Plunge 15.7% as $1.29B Volume Ranks 54th Amid $160M Tariff-Related Costs

On August 14, 2025, Tapestry (TPR) closed down 15.71% despite a 72.73% surge in trading volume to $1.29 billion, ranking 54th in market activity. The selloff followed the luxury goods company’s announcement of a $160 million tariff-related cost for fiscal 2026, driven by U.S. import duties impacting its Vietnam-based Coach and Kate Spade handbag production. Chief Financial Officer Scott Roe highlighted that Kate Spade, with its U.S.-centric sales model, would bear the brunt of the 20% tariffs on Southeast Asian imports.

Tapestry plans to reduce Kate Spade handbag styles by 30% to mitigate margin pressures, as retailers scale back inventory of less profitable SKUs. While quarterly revenue of $1.72 billion and adjusted EPS of $1.04 exceeded estimates, the firm revised its fiscal 2026 EPS forecast to $5.30–$5.45, below the $5.49 consensus. Analysts noted that Coach’s premium positioning allows it to absorb higher costs more effectively than Kate Spade, though broader industry inflation and producer-level price spikes could amplify challenges.

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