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.

Tapestry Inc.’s annual outlook for a key profit metric missed analysts’ forecasts due in part to tariffs, a sign that Wall Street is still adjusting to the full cost of duties for US companies.

Tapestry shares tumbled after the company forecast a difficult year ahead for its Kate Spade brand, overshadowing a successful turnaround of sister-brand Coach.