The company behind Coach and Kate Spade, Tapestry anticipates fiscal 2024 revenue to exceed $6.6 billion, slightly lower than the initial expectation of about $6.7 billion.

Tapestry’s third-quarter net sales fell short at $1.48 billion compared to the anticipated $1.50 billion, while adjusted earnings per share stood at 82 cents, surpassing estimates of 67 cents.

Recently, Tapestry had to cut its annual sales forecast as it missed third-quarter revenue estimates. This company reported subdued demand for its handbags and accessories in both North America and China.

Reduced consumer spending in North America, fueled by escalating prices, coupled with a fragile post-pandemic recovery in China, contributed to the weakened demand for Tapestry's products.

Joanne Crevoiserat, CEO attributed this decline to low consumer confidence in North America, likely influenced by persistent inflation. Revenue in North America, which comprised 61 per cent of the 2023 revenue, saw a 3 per cent decrease, while sales in Greater China slipped 2 per cent.

Analysts, such as Rachel Wolff from Emarketer, anticipate a gradual recovery in mainland China, potentially driven by increasing demand for international travel.

Despite the sales slump, Tapestry exceeded profit expectations, thanks to improved margins from full-priced product sales, reduced freight costs, and disciplined expense management.

Tapestry's $8.5 billion acquisition of Capri, the owner of Michael Kors, faces legal challenges from antitrust regulators, who argue it would eliminate healthy competition between the flagship brands. However, Tapestry remains optimistic about the deal's merits and its potential benefits for consumers.