Shares of Coach and Kate Spade parent Tapestry plunged Thursday after the company said tariffs will bite into its profits even as sales grow. The company's stock closed the day at $95.69, down nearly 16%.

Coach parent Tapestry forecast annual profit below expectations due to rising tariffs, sending its shares plunging 14%, and said it planned to cut the number of handbag styles offered as retailers try to offset the impact of import duties.

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 firms.