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Adds details on results, background

Nov 10 (Reuters)Tapestry Inc TPR.N 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.

(Reporting by Deborah Sophia and Uday Sampath in Bengaluru; editing by Milla Nissi)

((DeborahMary.Sophia@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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