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.

Shares of Coach and Kate Spade parent Tapestry fell on Thursday after it said tariffs will hurt its profits. The company said the higher duties will total $160 million for the full year. Yet CFO Scott Roe said consumer demand hasn't slowed, and has even accelerated so far in the current quarter.

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