Tapestry shares slumped 15% Thursday after the Coach and Kate Spade parent gave a weaker-than-expected outlook as it warned it would take a significant hit from new tariffs.

But Kate Spade continued to be a drag on the top line with business down 13 percent to $252.6 million in the quarter. The quirky handbag brand has been a trouble spot for Tapestry

It turns out Tapestry can’t even turn around an acquired brand it has owned for years, well before that Capri news was announced in 2023. Tapestry said on Thursday it had taken a $855 million write-down on Kate Spade largely because of a decline in both current and future expected cash flows along with investments the company is making.