Tapestry forecasts annual profit below estimates on tariff pain, shares plunge
The company estimates a $160-million hit from the U.S. import duties, which could result in an about 230-basis-point impact on its fiscal 2026 operating margin.
Tapestry primarily makes its Coach and Kate Spade handbags in countries such as Vietnam, Cambodia, the Philippines and India.
The Trump administration's unpredictable trade policies have shaken consumer sentiment and disrupted businesses and supply chain worldwide.
Tapestry's warning on Thursday is in line with the broader luxury sector slowdown that has hurt bellwethers such as Gucci-owner Kering (PRTP.PA), opens new tab and French luxury group LVMH (LVMH.PA), opens new tab.
U.S. consumer spending falling unexpectedly in May has also compounded concerns for companies such as Tapestry that have been ramping up efforts to attract younger customers by introducing new accessories and collections.
The company expects fiscal 2026 earnings per share to be in the range of $5.30 to $5.45, compared with analysts estimates of $5.49 per share, as per data compiled by LSEG. The forecast accounts for about 60 cents of incremental tariffs.
However, it expects fiscal 2026 revenue to be about $7.2 billion, compared with analysts' estimates of $7.11 billion, owing to steady demand for its Coach Tabby and Empire bags.
Shares of the company have risen about 74% this year on the back of the popularity of its Coach brand.
The push to add bag charms are also attracting millennial and Gen Z customers in regions such as North America, China and Europe.
This helped the company post quarterly sales of $1.72 billion that beat analysts' estimates of $1.68 billion.
Adjusted profit for the fourth quarter ended June 28 was $1.04 per share, topping estimates by 2 cents.
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The Independent
43 minutes ago
- The Independent
The Asian rich list is a powerful rebuke to anti-immigrant rhetoric
When he was young, Surinder Arora took evening jobs to make ends meet. One of those stints was as a waiter at the Renaissance Hotel at Heathrow. Today, he owns the hotel and a host of others at airports and elsewhere. One of his current projects is the redevelopment of Luton Hoo as a luxury golf and health spa. Another, with the support of airlines and advice from Bechtel, the giant US construction and engineering company, is to build the third runway at Heathrow. Remarkable as it is, Arora's story typifies the members of this year's Asian Rich List. He is ranked 14th, with a fortune estimated at £1.4bn. While they are all different, what characterises many is a strong work ethic, coupled with relentless drive and determination to succeed. Published by Eastern Eye, the survey provides a fascinating insight into an increasingly powerful and significant cohort of UK society, responsible for generating billions of pounds in investment, donating heavily to charities and creating tens of thousands of jobs. The combined wealth of the 101 richest British Asians in the country is put at £126.26bn, an increase of £6.22bn from a year ago. The number of billionaires has risen from 16 to 17, while there are several hovering outside this top level. Arora is representative for another reason. Now 66, he is gradually handing over the reins of the family empire to his son, Sanjay. Says Eastern Eye: 'If there is a trend, it is that in many families, the second or, in some cases, the third generation, are either taking over or have already done so.' The first generation was schooled in what Gopi Hinduja, who heads the number one Hinduja dynasty with £34.5bn, likes to call UOL – the university of life. Their children and grandchildren have been educated at the best schools and universities in Britain and America. Having inherited the same ambition and hunger, they are putting that education to good use in expanding the family business. The old North of England adage of 'clogs to clogs in three generations' does not apply to them. Keeping it in the family and protecting the line, while broadening and diversifying the firm, is a central tenet. Like many others, the Hindujas have also focused on the future, investing in tech solutions to provide sustainable transport and manufacturing and clean energy supply. One foot forward, another strongly rooted is their mantra. Gopi, for instance, is inordinately proud of his grandson, aged five, who 'begins every morning with his prayers to the world'. Another theme, again exemplified by Arora and the Hindujas, is hotels. After eight years and at a cost of £1.2bn, the latter have transformed the former Old War Office Building in Whitehall into the 120-room, top-of-the-London market, Raffles Hotel, complete with nine restaurants. The site also encompasses 85 serviced apartments. The Hinduja Group, which covers a myriad of concerns, among them oil, motor manufacturing, tech and finance, is looking for other similar property and hospitality opportunities. Coming up fast in the chart is Sharan Pasricha. Currently 42nd and worth £450m, he saw that figure climb £50m in the past 12 months – this, while the rest of the UK was suffering from sluggish or next-to-zero growth. Pasricha is establishing himself as a force in global hospitality, via his Ennismore commercial vehicle. After completing his MBA at London Business School, he set out to disrupt the traditional international hotel industry. He bought The Hoxton, an underperforming hotel in London, in 2012, and is rolling out the Hoxton brand across the UK and overseas. Meanwhile, he purchased Gleneagles, the prestigious Scottish hotel and golfing complex and has completely refurbished the grand hotel and its sporting and leisure facilities. On he goes, partnering Accor, one of the world's biggest hospitality companies, and launching the sumptuous private members club, Maison Estelle, in Mayfair, followed soon after by Estelle Manor, the country house hotel in Oxfordshire, chosen by Apple heiress Eve Jobs for her recent wedding. One irony is that the stately homes of former aristocrats who prospered on the might of the British Empire, which of course owned vast swathes of Asia, are being sold to people who can trace their heritage to those former colonies. That historic connection is maintained by Nirmal Sethia, fourth richest at £6.7bn. The entrepreneur has interests in sugar refining, security printing, gold mining and investment banking. However, he is best known for his devotion to tea, once an imperial preserve of British planters, and for founding Newby Teas, which he hails as 'the world's finest tea company'. Ominously for the Labour government, Sethia, who has a house in London, mostly divides his time these days between Dubai and Kolkata. He is thought to be one of the non-doms unimpressed by Rachel Reeves's first Budget and her proposed removal of the preferential tax status for wealthy foreigners. While Sethia's UK tax payments may be relatively small, there is no doubting his monetary contribution by other means. Through his N Sethia Foundation, he has given close to £1bn to a variety of good causes, many of them in the UK. He was one of the first to offer financial assistance to victims of the Grenfell fire and he is a major backer of the newly revamped Museum of London. Philanthropy is a common thread. Cyrus and Priya Vandrevala are ninth, with £2.5bn, but it is their success in impact investing and mental health from the Vandrevala Foundation that sets this well-connected duo apart. They are also passionate about the environment and are patrons of Elephant Family, the charity dedicated to saving Asian elephants from extinction. Their involvement arose through their friendship with the late Mark Shand, brother of Queen Camilla. One power couple that needs little introduction is Akshata Murty and her husband, Rishi Sunak. The former prime minister and his wife experienced a whopping £200m increase in their paper fortune, put at £920m, most from her stake in her father's flourishing Infosys tech operation. Still only 45, no former PM has ever been as wealthy as Sunak. Despite this and hardening ties with Goldman Sachs, his first employer after he graduated from Oxford, he remains a backbench MP and insists he is not going anywhere. 'I am happy to confirm that I will now be spending more time in the greatest place on earth, where the scenery is worthy of a movie set and everyone is a character,' he said of his North Yorkshire constituency, while leading the Opposition response to that Labour Budget. Against the present backdrop of protests against immigration, the Asian Rich List illustrates that the UK has so much to be thankful for. It is hard to imagine where the economy, wider society, would be without the loyalty, tenacity and public spirit of those on the list and the ones ascending fast. We urgently need more like them, not less.
The Sun
11 hours ago
- The Sun
How ‘shady' travel firm flogged by TV stars like Vicky Pattison & Jess Wright is leaving young mums £100s out of pocket
POSING in a lime-green bikini beside the rooftop pool of her upmarket Nice hotel, Vicky Pattison looks like any other off-duty celeb in the glamorous French Riviera for the Monaco Grand Prix. But her envy-inducing Instagram post isn't just a holiday update for her 5.5million followers - it's also a plug for the reality star's side hustle as a 'travel agent', directing fans to her Vicky's Vacays page. 19 There - amid pictures of the former reality star sipping cocktails in the Caribbean, and enjoying a spa break in Mauritius - she promises tempting holiday discounts and encourages fans to 'turn your passion for travel into an income', adding: 'You too can join our Jet set team of girls & start earning extra.' With endless posts of luxe hotels and sundowners by the pool, Vicky and fellow stars, including Towie's Jess Wright and Real Housewives of Cheshire's Tanya Bardsley, are perfect poster girls for InteleTravel, a £155million network of independent travel agents (ITAs) who recruit a staggering 19,000 women a year, largely via social media. Encouraged to sign up by friends and followers, these women are told if they pay £142 (plus a monthly fee of £32) to become an ITA, they can book holidays for themselves and others - and earn commission in the process, nabbing half-price discounts and building a business that fits around their busy lives. Jess Wright justifies the fees - which also cover access to online courses, events and training programmes - by telling potential recruits that if they are too skint to 'invest into your future, then this is exactly why you need this travel business'. But while the celebrity endorsers are lining their pockets by recruiting agents and earning commission - from both your sign-up and those you go on to recruit - those at the bottom are rarely breaking even, an investigation by The Sun can reveal. According to documents released by PlanNet, who handle recruitments for the scheme, recruiting nine people moves you up to 'Gold Builder' status - unlocking bonuses and a cut of the commissions from your recruits' recruits. Thanks to her huge social media following, Vicky has reportedly reached 'Two Star Director' status - meaning potential earning of £317,000 a year. Mum-of-two Gemma Hamilton, from Cardiff, is one of the women lured in by an Instagram message. 'Someone approached me and said I could make big money,' she says. 'I wasn't sure if it was for me but I thought, even if I saved money on my own family holidays, it might be worth looking into. 'I never made any money - I think in many cases, they pressure women like me so much, they just give in and sign up, and then it's hard to leave. 'Messages are sent saying: 'If you quit, it doesn't just impact on you, it impacts on your family'. In my opinion, they are playing on women's emotions. It's wrong.' Vicky Pattison shows off incredible figure and abs in blue bikini 19 When we enquired about joining, we were told, like Gemma, that there is big money to be made. One 'recruiter' claimed that it's 'insane' how much you can make, saying she booked £27,000 of travel last year, alongside her full-time job. But accounts from PlanNet Marketing Inc, the company InteleTravel uses to recruit, show that, in 2024, 92.5 per cent of agents made just $40 (£32) per year - meaning that with an initial outlay of £142 and a £32 monthly fee, they LOST an average of £494. InteleTravel declined to comment on the amount their agents earn. Official data from the Direct Selling Association reveals that 63 per cent of agents in the sector go on to build a 'team', often recruiting family and friends - although InteleTravel's own figures may differ from the UK wide average. Pushed to recruit 19 But Gemma, 39, claims she was pressured to do just that. 'The lady who recruited me repeatedly pushed me to promote the business on my social media to sign up more people,' she alleges. 'The tone was very much that I was 'stupid' for not doing that already. 'It's obvious that those earning the money are getting it primarily from the women below them, who are signing up and bringing in more people. 'The commissions from travel would never be big enough to generate the income they promote.' InteleTravel has frequently denied it is a pyramid scheme, which is illegal, or even a 'multi-level marketing' (MLM) business model, which has a similar structure but falls within the legal threshold because it has a genuine product to sell. InteleTravel operates as a legitimate, ABTA-regulated travel agent business and there is no suggestion that they have done anything illegal. Anyone who wants to sign up with them must go through PlanNet Marketing and The Sun found no way to join without doing this. Whilst InteleTravel agents can make legitimate commissions from selling travel, statistically it appears that many do not make a profit once the required and compulsory outgoings via PlanNet are deducted. A 2025 survey suggests that across the whole UK sector 93 per cent of direct selling agents - who sell products to others online for an income - are women. But, far from being a platform for female empowerment, the onslaught of social media messaging from InteleTravel agents appears to target a specific group - mums of school-age kids, typically between 33-44. Easy targets 19 19 According to Naomi Magnus, psychotherapist at North London Therapy, young mums are often targeted by online businesses precisely because they are so vulnerable. 'Recruiters often exploit feelings of isolation, inadequate income and unfulfilled aspirations, promising social interaction and validation in a community of 'like-minded people',' she claims. 'When children start school it often leaves mums seeking purpose, creating a vulnerability that makes them more open to new opportunities. 'Participants often promote the belief they are business owners, when they are in fact customers relying on recruitment and sales to generate income.' Another source, who is still a registered agent and asked to remain anonymous, claims that selling the scheme as a part-time solution for busy mums could be seen as a cynical ploy. 'You are set up to fail. The people who say they are making big money would have to be working full time,' she says. Rights of Reply When presented with figures that showed that most agents ended up making a loss, an InteleTravel UK spokesman said: 'We believe this information originates from PlanNet Marketing where this information is in the public domain, so we suggest redirecting your questions directly to PlanNet. 'PlanNet handles the recruitment for InteleTravel, so to join InteleTravel, you go through PlanNet. 'InteleTravel isn't going to comment on the commissions earned by agents. 'InteleTravel is a host travel agency and should you wish to talk to us about selling travel through our travel advisors, we would be happy to showcase some of our successful agents to you.' When asked for average earning figures for their agents, however, they refused to comment further. We contacted PlanNet but received no response. Agents for Vicky Pattison, Jess Wright and Tanya Bardsley declined to comment. 'There is no way you could do that while being a mum or around another job. 'If you break even with the financial investment and don't lose money, you'll still end up spending a lot of hours either in the meetings, doing training or trying to organise bookings. 'For most people, it's not sustainable, and then you feel like a failure. 'Especially with the messages telling you to 'get out of your own head' and 'change your story'. It's done specifically to make it feel like you're the problem. 'People are scared to leave because they don't want to come across as failures or they are embarrassed to admit they were sucked in.' And it's not just would-be travel agents who have found themselves out of pocket. Holiday hell 19 19 Marisa Noyce, from Hampshire, alleges a dream holiday for her recent 40th birthday turned into a nightmare after she booked through an InteleTravel agent. 'My hairdresser told me about this lady who gets good deals on holidays, so I got in contact and she said she could get me the same deal I'd found online for almost £700 less,' she says. 'I felt confident because she lived near me and I trusted my hairdresser, who'd booked through her before. 'But something was off from the beginning. The confirmation PDF was something the agent had made herself and we had no official documentation. 'My husband and I were both chasing the agent for our travel details for weeks, but she kept fobbing us off. 'Eventually, a few days before, I was starting to panic so I rang the hotel in Morocco and my worst fear was confirmed - there was no record of our booking.' Further digging revealed the agent had not booked the flights for Marisa and her family either. False promises 19 19 19 'We repeatedly chased her for answers and our money back and at the very last minute she got back to me, claiming it was an admin error. 'At this point, the hotel we planned was sold out but she said she could get into an even nicer place in Greece for the same price. 'She seemed very genuine, so I gave her the benefit of the doubt.' All seemed to be going as planned until the family arrived in Greece and the hotel asked them to pay £6,000 for their room. 'Even though the booking had been made in our name, it hadn't been paid for. 'We were in a different country with our teenage daughter and suddenly had no place to stay. 'Luckily, the hotel was very kind. They checked us in anyway and said we could arrange for the agent to send payment in the morning.' Marisa spent the remainder of her holiday - and her 40th birthday - trying to call and message the agent to get the problem solved. 'It totally spoiled my birthday. Everyone was so stressed and my daughter didn't want to leave the room in case the hotel threw us out. 'Our dream trip turned into a holiday from hell.' While still in Greece, Marisa elevated the situation to InteleTravel's head office in the USA, who did spring into action and by the time the family were due to check out, the hotel bill had been paid. More claims 19 19 Back in the UK, she relayed her experience on Facebook and warned other locals not to hand over money to the agent. She was contacted by people who claimed to have had similar experiences, with one family having their Christmas trip to Lapland cancelled. 'I now warn people about booking with these agents. I'm sure most are not dishonest, but I feel more confident booking with an established agency,' says Marisa. 'This agent wasn't even privy to great deals. Our hotel in Greece was actually just booked through 'You are just literally handing over your hard-earned cash to a complete stranger for a deal you can get online for yourself. Why risk it?' As for Gemma, who left InteleTravel at the beginning of the year, she is still getting approached every day by agents hoping to re-recruit her. 'It's always by other women. They reply to your Instagram stories about something else, befriend you and then cleverly lure you in with their messaging, which they appear to be trained for, because everyone says the same. It's shady,' she says. 'The lady who recruited me was very persistent. She messaged me for months before eventually giving up. 'I just wanted to sell travel, not a promise of making all this money to my friends and followers on social media. 'And, of course, I never did make anything close to that.' 19 19
The Independent
15 hours ago
- The Independent
Bioethanol plant deems lack of Government support an ‘act of economic self-harm'
The UK's largest bioethanol plant has described a Government decision not to offer direct funding to the industry as 'a flagrant act of economic self-harm' which will force it to close. Vivergo Fuels, near Hull, warned earlier this year that it was in imminent danger of closure as crisis talks continued with the Government. This followed the end of the 19% tariff on American bioethanol imports as part of the recent UK-US trade deal. On Friday, the Government said: 'This Government will always take decisions in the national interest. 'That's why we negotiated a landmark deal with the US which protected hundreds of thousands of jobs in sectors like auto and aerospace. 'We have worked closely with the companies since June to understand the financial challenges they have faced over the past decade, and have taken the difficult decision not to offer direct funding as it would not provide value for the taxpayer or solve the long-term problems the industry faces. 'We recognise this is a difficult time for the workers and their families and we will work with trade unions, local partners and the companies to support them through this process. 'We also continue to work up proposals that ensure the resilience of our CO2 supply in the long-term in consultation with the sector.' Ben Hackett, managing director of Vivergo Fuels, said: 'The Government's failure to back Vivergo has forced us to cease operations and move to closure immediately. 'This is a flagrant act of economic self-harm that will have far-reaching consequences. 'This is a massive blow to Hull and the Humber. 'We have fought from day one to support our workers and we are truly sorry that this is not the outcome any of us wanted. 'This decision by ministers will have a huge impact on our region and the thousands of livelihoods in the supply chain that rely on Vivergo, from farmers to hauliers and engineers.' Mr Hackett said the industry has faced 'unfair regulations' for years that favoured overseas producers, and the recent US-UK trade deal pushed the sector 'to the point of collapse'. He said: 'We did everything we possibly could to avoid closure, but in the end it was the Government that decided the British bioethanol sector was something that could be traded away with little regard for the impact it would have on ordinary hard-working people. 'We did not go down without a fight and I hope that the noise we generated over the past three months will make the Government think twice before it decides to sign away whole industries as part of future trade negotiations.' A spokesman for Associated British Foods, which owns Vivergo, said: 'It is deeply regrettable that the Government has chosen not to support a key national asset. 'We have been left with no choice but to announce the closure of Vivergo and we have informed our people. 'We have been fighting for months to keep this plant open. 'We initiated and led talks with Government in good faith. We presented a clear plan to restore Vivergo to profitability within two years under policy levers already aligned with the Government's own green industrial strategy.' The spokesman said the Government had 'thrown away billions in potential growth in the Humber and a sovereign capability in clean fuels that had the chance to lead the world'. The bioethanol industry, which also includes the Ensus plant on Teesside, has argued the trade deal, coupled with regulatory constraints, has made it impossible to compete with heavily subsidised American products. Vivergo said the Hull plant, which employs about 160 people, can produce up to 420 million litres of bioethanol from wheat sourced from thousands of UK farms. It has described bioethanol production as 'a key national strategic asset' which helps reduce emissions from petrol and is expected to be a key component in sustainable aircraft fuel in the future. The firm recently signed a £1.25 billion memorandum of understanding with Meld Energy to anchor a 'world-class' sustainable aviation fuel facility at the site. But Meld Energy said earlier this month uncertainly over the bioethanol industry was putting this plan in jeopardy. The Vivergo plant is also the UK's largest single production site for animal feed, and the company says it indirectly supports about 4,000 jobs in the Humber and Lincolnshire region. Vivergo has said it buys more than a million tonnes of British wheat each year from more than 4,000 farms, and has purchased from 12,000 individual farms over the past decade. But it took its last wheat shipment earlier this month.
