Tapestry, which agreed to buy rival Capri in August, cut its annual sales forecast and missed the estimates for first quarter yesterday, taking a hit from weak demand for its luxury handbags and shoes in North America.

Shares of the Coach parent fell 1.7 percent before the bell despite its profit exceeding market expectations. They have lost nearly 30 percent of their value this year.

Tapestry’s sales of shoulder bags, apparel and footwear, seen as “accessible luxury”, has struggled as stubborn inflation and rising borrowing costs in the United States strain consumer budgets.

The company said revenue in North America was in line with prior year, citing a “difficult consumer demand environment”, while sales in Greater China grew 9 percent.

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✍️ Reuters
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