Tapestry shares fell 16.17% to $128.88 in Thursday's premarket session after the company posted fiscal fourth-quarter 2026 results and forecast fiscal 2027 sales of $8.4 billion to $8.5 billion, with the $8.45 billion midpoint slightly below the $8.464 billion analyst estimate. Fourth-quarter net sales rose 9% year over year to $1.88 billion, or 8% on a constant-currency basis, while adjusted earnings per share increased 28% to $1.32, ahead of the $1.28 estimate. Growth was driven by Coach, where revenue climbed 15% to $1.64 billion, while Kate Spade revenue fell 7% to $235.1 million and remained a drag on performance. Adjusted gross margin expanded 180 basis points to 78.1% and adjusted operating income rose 25% to $362 million. Tapestry also highlighted customer gains, cash generation and shareholder returns, but said Kate Spade's turnaround is progressing more slowly than expected. The fiscal 2027 outlook also calls for adjusted earnings of $7.80 to $7.90 per share, about 50 basis points of operating margin expansion and adjusted free cash flow approaching $1.7 billion, based on assumptions including a mid-20% tariff rate on U.S. inventory receipts and no significant deterioration in inflationary pressures or consumer confidence.