Tapestry Inc. reported fourth-quarter revenue of $1.72 billion, surpassing analysts’ consensus of about $1.68 billion, while adjusted earnings rose 13% year-over-year to $1.04 a share. A 140-basis-point improvement in gross margin to 76.3% and continued demand for Coach handbags drove the beat. For fiscal 2026 the New York-based company projected revenue of roughly $7.2 billion, ahead of Wall Street estimates, but guided adjusted profit to a range of $5.30 to $5.45 a share, below the $5.48–$5.49 analysts expected. The forecast factors in roughly $0.60 a share of incremental costs tied to U.S. import tariffs, and the company warned in a regulatory filing that additional duties could weigh on results beyond 2026. Investors focused on the softer profit outlook: Tapestry’s stock dropped as much as 16% in early trading, erasing some of the 74% gain it had logged this year on the strength of its Coach turnaround.