Why Tapestry (TPR) Stock Is Down Today

Company Performance - Tapestry reported third-quarter revenue of $1.70 billion and GAAP earnings of $1.28 per share, exceeding analyst forecasts despite a 12.7% drop in shares [1] - The company experienced a 21% year-on-year increase in constant currency revenue, indicating strong underlying performance [1] - Tapestry raised its full-year revenue outlook to approximately $7.3 billion based on the strong results [1] Market Reaction - The significant drop in Tapestry's stock suggests that investors had anticipated an even stronger performance and outlook from the company [1] - Tapestry's shares have shown volatility, with 12 moves greater than 5% in the past year, indicating that this news has notably impacted market perception [3] Broader Market Context - Recent comments from President Trump regarding China have injected volatility into the broader markets, particularly affecting the leisure industry, which is sensitive to economic sentiment [4] - China's announcement of new export controls on critical minerals is viewed as a strategic assertion of dominance in the global rare earth supply chain, raising concerns about economic headwinds and potential impacts on consumer spending [5]