Tapestry (NYSE:TPR) shares surged Thursday after the release of a positive second quarter earnings report that beat market expectations.
Tapestry Outperforms Expectations
The company, which owns the Coach and Kate Spade brands, delivered revenue of $2.5 billion, an increase of 14% versus the prior year. This beat the expectation of $2.32 billion. The company reported earnings per share of $2.69, beating market expectations of $2.22 a share.
Handbags and North America Are Strongest Segments
According to a presentation by the company, 56% of the sales were from handbags, 27% were from accessories and 6% were from footwear. The company also noted having a younger customer base in North America, where more than 60% of sales were made.
In terms of shopping channels, in-person stores saw 57% of sales while digital saw 30% of sales.
Raising Guidance
Tapestry also raised its full year guidance, raising adjusted earnings-per-share to between $6.40 to $6.45 from between $5.45 to $5.60. The company raised its full year sales guidance from $7.3 billion to $7.75 billion versus a $7.4 billion estimate.
Shares Jump After Earnings
TPR Price Action: Tapestry shares were up 4.66% at $135.98 at the time of publication on Thursday, according to Benzinga Pro data.
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