Shares of Tapestry, parent company of Coach and Kate Spade, dropped due to expected profit losses from tariffs, totaling $160 million for the year. Despite strong sales, the company anticipates lower earnings of $5.30 to $5.45 per share for fiscal 2026, below analyst expectations of $5.49. President Trump’s tariff policies have impacted imports, prompting companies to adapt by shifting manufacturing, raising prices, and focusing on popular items. Tapestry remains optimistic about sales growth despite profit challenges.

Read more at CNBC: Tapestry (TPR) Q4 2025 earnings