Tapestry Shares Sink on Weaker-Than-Expected Fourth-Quarter Sales for Coach, Kate Spade Parent

Tapestry (TPR) shares sank Thursday after the fashion company’s fiscal fourth-quarter net sales missed expectations.

The New York-based owner of the Coach, Kate Spade and Stuart Weitzman brands reported posted $1.51 billion in sales for the quarter ended June 30, up from $1.48 billion in the prior-year period but below Capital IQ’s consensus for $1.53 billion. Non-GAAP earnings per diluted share rose a penny from last year to $0.61, matching the Street’s view.

Tapestry shares were nearly 23% lower in afternoon trading.

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“Fiscal 2019 was a year of meaningful evolution for Tapestry,” said Chief Executive Victor Luis. “We experienced ongoing strength in our business internationally, while navigating a volatile backdrop in North America. Importantly, we made significant progress on our strategic initiatives, most notably building the foundation of our distinctive multi-brand platform.”

Tapestry said gross profit edged up to $1.02 billion on a non-GAAP basis from $1.01 billion last while gross margin slipped to 67.3% from 67.9%.

Selling, general and administration expenses rose to $797 million on a non-GAAP basis from $780 million.

Coach net sales reached $1.1 billion, matching last year’s result on a reported basis but up 2% on a constant-currency basis. Global comparable-store sales rose 2%.