© Reuters. FILE PHOTO: A signage is seen in the offices of Tapestry, Inc., in Manhattan, New York, U.S., November 19, 2021. REUTERS/Andrew Kelly
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(Reuters) -Tapestry Inc cut its annual sales and profit forecasts on Thursday, blaming persistent COVID-19 restrictions in China and an expected slowdown in demand in North America.
Luxury goods companies have managed to pass on higher costs to affluent shoppers, but China remains a sore spot as sporadic business and movement restrictions due to Beijing’s “dynamic zero-COVID” policy prevent consumers from returning to high-fashion stores.
The company said it expected fiscal 2023 revenue of $6.5 billion to $6.6 billion, compared with the prior outlook of around $6.9 billion.
It also expects fiscal 2023 earnings of $3.60 to $3.70 per share, compared with its previous forecast of between $3.80 and $3.90 per share.
The company’s total revenue rose 2% to $1.51 billion in the first quarter, compared with analysts’ average estimate of about $1.50 billion according to Refinitiv IBES data.
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