Tapestry Faces $160 Million Tariff Hit in 2025

Tariff Costs: The $160 Million Question Tapestry’s annual earnings-per-share (EPS) outlook for the current fiscal year has missed analyst expectations, with leadership now forecasting diluted EPS between $5.30 and $5.45. Analysts had hoped for $5.49. The discrepancy is due to the impact of increased tariffs.

The company’s EPS forecast already includes additional costs from higher duties, totaling about $160 million for the year. Management indicated that the effect of tariffs would be significant and emphasized their plans to address and mitigate these pressures moving forward.

Revenue Outlook: Growth Driven by Coach Despite these challenges, Tapestry projects revenue of nearly $7.2 billion for the fiscal year ending June. This would be an increase over the previous year and is slightly above analyst expectations.

Notably, this forecast excludes contributions from Stuart Weitzman, the shoe brand recently sold by Tapestry due to poor performance. Executives say that offloading Stuart Weitzman will enable more focus and resources on boosting Coach sales and turning around Kate Spade…