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Bloomberg
Tapestry Inc rose after posting strong sales at its Coach brand while the struggling Kate Spade unit’s results weren’t as bad as expected. Still, the company said its full-year forecast will be negatively impacted by the coronavirus.
Coach same-store sales grew 2% worldwide in the second quarter, topping the 1% average of analysts’ estimates, according to Consensus Metrix. Kate Spade had a drop of 4%, compared with projections for an 8.5% decline.
The company expects its full-year profit to take a 35-cent to 45-cent hit from the impact of the deadly virus outbreak in China.
Asia was already a source of concern for Tapestry, with the
ongoing US-China trade war
pressuring manufacturing and protests in Hong Kong disrupting retail operations.
CEO Jide Zeitlin said that if the situation with the coronavirus deteriorates further, the effect on Tapestry’s forecast “could be worse.â€