(Reuters) -Tapestry forecast annual profit below estimates on Thursday, as the Coach handbag maker grapples with higher tariff costs, sending the company's shares down 8% in premarket trading.

The company estimates a $160-million hit from the U.S. import duties, which could result in an about 230-basis-point impact on its fiscal 2026 operating margin.

Tapestry primarily makes its Coach and Kate Spade handbags in countries such as Vietnam, Cambodia, the Philippines and India.

The Trump administration's unpredictable trade policies have shaken consumer sentiment and disrupted businesses and supply chain worldwide.

Tapestry's warning on Thursday is in line with the broader luxury sector slowdown that has hurt bellwethers such as Gucci-owner Kering and French luxury group LVMH .

U.S. consumer spending falling unexpectedly in May has also compounded concerns for companies such as Tapestry that have been ramping up efforts to attract younger customers by introducing new accessories and collections.

The company expects fiscal 2026 earnings per share to be in the range of $5.30 to $5.45, compared with analysts estimates of $5.49 per share, as per data compiled by LSEG. The forecast accounts for about 60 cents of incremental tariffs.

However, it expects fiscal 2026 revenue to be about $7.2 billion, compared with analysts' estimates of $7.11 billion, owing to steady demand for its Coach Tabby and Empire bags.

Shares of the company have risen about 74% this year on the back of the popularity of its Coach brand.

The push to add bag charms are also attracting millennial and Gen Z customers in regions such as North America, China and Europe.

This helped the company post quarterly sales of $1.72 billion that beat analysts' estimates of $1.68 billion.

Adjusted profit for the fourth quarter ended June 28 was $1.04 per share, topping estimates by 2 cents.