Salem Radio Network News Saturday, October 1, 2022

Business

Tapestry forecasts full-year profit below estimates on hit from China

(Reuters) -Tapestry forecast full-year earnings below estimates after reporting lower-than-expected quarterly revenue on Thursday, as lockdowns in China hurt sales of its designer handbags and apparel in the region.

Major Chinese cities have imposed multiple rounds of COVID-19 restrictions this year following Beijing’s “dynamic zero-COVID” policy of promptly stamping out all outbreaks at a time when much of the world co-exists with the virus.

Tapestry joins the likes of Gucci owner Kering SA, Ray-ban maker EssilorLuxottica and Ralph Lauren Corp in flagging a sales hit from China, a key growth market, after these measures left high-fashion companies with piles of unsold stock.

Tapestry forecast fiscal 2023 profit between $3.80 and $3.90 per share, lower than Wall Street expectations of $3.91.

The Coach handbag maker reported total revenue of $1.62 billion for the fourth quarter ended July 2, missing analysts’ average estimate of $1.64 billion, according to IBES data from Refinitiv.

(Reporting by Mehr Bedi in Bengaluru; Editing by Maju Samuel)

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