Handbag maker Tapestry cut its full-year profit forecast and reported its first quarterly earnings miss in at least two years, as its millennial-focused Kate Spade brand failed to impress shoppers with a lack of new designs.

Shares of Tapestry, which also blamed falling tourist spending and a slowing global economy for its lackluster performance, were last down 16.4 percent, their worst day in more than six years.

Kate Spade, the brand Tapestry bought over a year ago, did not have a special collection for the holidays and Chief Executive Officer Victor Luis blamed the 11 percent drop in the brand's comparable store sales to a "lack of newness".

"It did worse than we expected and I believe that was due to the whole market moving on and Kate Spade not having moved on as much," Luis told Reuters in an interview.

Kate Spade hired Nicola Glass, a Gucci and Michael Kors alumnus, as its creative director last year. Her first collection was showcased in September, but arrived in stores only this year after the key holiday months.

"That's the main reason. It was just the time required for us to develop newness with the new creative direction," the CEO said.

Like other retailer, Tapestry relies heavily on the holiday season as it makes up almost a third of its annual sales.

"They missed a very important quarter," said Jane Hali, chief executive officer of investment research firm Jane Hali & Associates. "It was promotional and the atmosphere in the stores hadn't changed."