Shares of Tapestry (NYSE:TPR), owner of Coach and other luxury brands, were falling on Thursday after the company released earnings that fell short of expectations and announced a round of job cuts.
As of 11:30 a.m. EDT today, Tapestry's shares were down about 9.6% from Wednesday's closing price.
Tapestry reported earnings for its fiscal third quarter before the market opened on Thursday, and they were worse than expected, even after the coronavirus pandemic shuttered stores around the world.
On an adjusted basis, excluding one-time items and currency fluctuations, Tapestry lost $0.27 per share on revenue of $1.07 billion. Both were down significantly from year-ago results.
Tapestry's revenue was OK under the circumstances, but the loss was worse than analysts had forecast. Wall Street analysts polled by Thomson Reuters had expected a loss of $0.11 per share on revenue of $1.03 billion, on average.
Tapestry had already made a series of cost-cutting moves earlier in April. Today, it announced a new and sobering one: A series of job cuts, hitting both its retail and corporate workforces, are coming soon.
Between the earnings miss and the layoffs, it's not hard to see why investors have been shunning the stock today.
CEO Jide Zeitlin declined to give investors any guidance for the current (fourth) fiscal quarter and full fiscal year, citing the ongoing uncertainties amid the pandemic. Tapestry will report its fiscal fourth-quarter results on Aug. 13.