Tapestry Inc. (TPR) shares plummeted 12.45% during Thursday's intraday trading session, sharply reversing earlier pre-market gains that followed the company's better-than-expected fiscal third-quarter results.

The luxury fashion house reported quarterly adjusted earnings of $1.66 per share, significantly beating analyst estimates of $1.30, and raised its full-year guidance. Despite these positive headlines, investor sentiment turned negative as details emerged about uneven performance across its brand portfolio. While Coach sales surged 31%, Kate Spade revenue declined by 10%, raising concerns about the company's growth sustainability.

Market analysts suggest the sharp intraday decline reflects profit-taking after the initial pre-market rally and growing apprehension about Kate Spade's ongoing challenges. The company's executives indicated they expect further declines for Kate Spade in the current quarter, overshadowing the strong performance of the Coach brand.