May 9 (Reuters) - Coach handbag maker Tapestry

posted third-quarter revenue below Wall Street expectations on

Thursday as demand for its handbags and accessories continued to

falter in the face of high inflation.

Tapestry's net sales came in at $1.48 billion in the quarter

ended March 30, compared to analysts' average estimate of $1.50

billion, according to LSEG data.

The company's proposed $8.5 billion buyout of Michael Kors

owner Capri is facing hurdles as the U.S. Federal Trade

Commission has sued to block it on grounds that the deal would

eliminate "direct head-to-head competition" between the flagship

brands of the two luxury handbag makers.

(Reporting by Savyata Mishra in Bengaluru; Editing by Arun

Koyyur)