Tapestry, the parent company of Coach and Kate Spade, reported lower-than-expected third-quarter revenue, leading to a 3.1% pre-market drop in its stock price. The company's performance was affected by decreased demand for its handbags and accessories, particularly in North America. Despite this revenue shortfall, Tapestry did manage to exceed profit expectations for the quarter. However, the company has revised its annual sales forecast downwards due to ongoing weak demand. Additionally, Tapestry's strategic move to reposition its Coach brand into the 'Expressive luxury' market from the 'accessible luxury' market has been noted amid its efforts to acquire Capri Holdings, owner of Michael Kors. This acquisition is currently facing challenges from an FTC lawsuit.