(Reuters) -Tapestry, which agreed to buy Capri last week, forecast fiscal 2024 profit below estimates and reported lower-than-expected quarterly sales on Thursday, as demand for its luxury handbags and accessories slows down in the United States.
Shares of the Coach parent were down 0.7% in premarket trading as its North America segment saw a softer consumer demand environment amid a pullback in discretionary spending.
Rivals Ralph Lauren, LVMH, Gucci-owner Kering and Canada Goose have also faced sales pressures from softening U.S. demand.
Tapestry said fiscal 2024 net sales were approaching $6.9 billion, compared to average analysts’ estimate of $6.93 billion, according to Refinitiv IBES data.
Adjusted earnings for the year is expected to be in the range of $4.10 to $4.15 per share for fiscal 2024, compared to estimates of $4.24.
The company’s net sales of $1.62 billion in the fourth quarter ended July 1 were flat from last year. Analysts on average had expected $1.65 billion, according to Refinitiv data.
(Reporting by Savyata Mishra and Juveria Tabassum in Bengaluru; Editing by Maju Samuel)
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