Tapestry Inc. reported fiscal fourth-quarter 2025 revenue of $1.72 billion, an 8 percent increase from a year earlier and ahead of analysts’ $1.68 billion estimate. Adjusted earnings rose 13 percent to $1.04 a share, also topping expectations, while gross margin expanded 140 basis points to 76.3 percent, helped by a 13-plus-percent sales jump at the flagship Coach label. Despite the stronger-than-expected quarter, the accessories group issued a conservative outlook for fiscal 2026, projecting adjusted earnings of $5.30 to $5.45 a share versus the $5.49 consensus. The guidance factors in about $160 million, or roughly $0.60 a share, of higher U.S. import duties that management said will trim operating margin by 230 basis points. Revenue is forecast to edge up to roughly $7.2 billion, marginally above Wall Street’s view. Chief Financial Officer Scott Roe told investors the company is “facing greater than previously expected profit headwinds from tariffs and duties,” even as demand for Coach handbags remains solid. Management said it is exploring further manufacturing shifts and operational efficiencies to blunt the impact of the 145 percent tariff regime that began in April. The downbeat profit guidance overshadowed the quarterly beat, sending Tapestry shares tumbling about 15 percent in early New York trading. The stock has nevertheless gained more than 70 percent year to date on sustained momentum in affordable luxury, but investors are now weighing the extent to which higher trade costs could erode those gains.