US Stock Market Move | The profit outlook for the fiscal year 2026 is below expectations. Tapestry (TPR.US) fell more than 13%.

On Thursday, Tapestry (TPR.US) plunged over 13%, marking its biggest drop since March 2020, closing at $97.94. On the news front, the financial report showed that for the fourth quarter of fiscal year 2025 ending on June 28, Tapestry's adjusted earnings per share reached $1.04, surpassing analyst expectations of $0.02; quarterly sales of $17.2 billion also exceeded analyst estimates of $16.8 billion. Looking ahead, the brand group with Coach and Kate Spade expects diluted earnings per share for fiscal year 2026 to be between $5.30 and $5.45, a 4% to 7% increase from the previous year, but lower than analysts' expectations of $5.49. In a statement on Thursday, Tapestry said that the difference mainly came from tariff impacts, expecting to have a negative impact of $0.6 per share. The market seems to have not fully digested this cost, leading to a sharp decline in its stock price, despite the stock having previously gained 74% year-to-date.