Tapestry Group on Thursday raised its full-year revenue and profit guidance.
Buoyed by purchases of luxury handbags and apparel in the U.S. and Europe, Tapestry is seeing its stock rise 3% in pre-market trading.
Tapestry, which owns Coach, Stuart Weitzman and Kate Spade, raised its share repurchase target for the year to $1.25 billion from $1 billion.
Tapestry “continues to take a meticulous approach to raising prices and elevating its brand. This is helping to alleviate the freight and other supply chain pressures that are being felt by all,” commented Simeon Siegel, an analyst with BMO Capital Markets.
The luxury goods maker’s gross margin was 68.1% in the second quarter, driven by higher freight costs to maintain product flow and meet consumer demand.
The company expects fiscal 2022 sales of about $6.75 billion, up from an estimate of $6.6 billion. It expects annual earnings of $3.60 to $3.65 per share, up from $3.45 to $3.50 previously.
Total revenue rose 27 percent to $2.14 billion in the second quarter ended Jan. 1, beating analysts’ average estimate of $2 billion, according to IBES data from Refinitiv.
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