Shares of Tapestry Inc. (TPR - Get Report) , the parent company of high-end luxury fashion brands including Coach, Stuart Weitzman and Kate Spade, tumbled after the company reported fiscal second-quarter earnings that missed analysts' forecasts.
The stock fell 14.8% to close at $33.48 in trading on the New York Stock Exchange.
Net income for the fiscal second quarter ended Dec. 29 rose to $254.8 million, or 88 cents a share, from $63.2 million, or 22 cents, in the comparable year-earlier period.
On an adjusted basis, per-share earnings came in at $1.07, 4 cents shy of the FactSet consensus estimate of $1.11. Sales, meanwhile, gained 1% to $1.8 billion, also lower than analysts' forecasts of $1.86 billion.
Coach sales increased 2% to $1.25 billion and Stuart Weitzman sales rose 3% to $124 million, the company said, meeting expectations, while Kate Spade sales slipped 1% to $428 million vs. expectations of an 11% increase to $485 million.
Uncertain economic and market conditions coupled with an unexpected drop in Kate Spade sales weighed on earnings for the quarter, Tapestry CEO Victor Luis said in a statement.
While sales and gross profit rose relative to the prior year's strong holiday results, "... this performance fell short of our expectations in the face of an increasingly volatile macroeconomic and geopolitical backdrop," Luis said.
For fiscal 2019, the company expects adjusted per-share earnings of between $2.55 and $2.60, below the FactSet consensus of $2.78.