Tapestry on Thursday raised its annual sales forecast after reporting better-than-expected second-quarter revenue, driven by strong demand for its pricey Tabby bags and suede boots in North America and China.
Shares of the New York-based company rose nearly 8% in trading before the bell.
Tapestry’s Coach brand is seeing strong demand for its Tabby crossbody bags and Coachtopia leather handbags from young shoppers given their immense popularity on social media sites.
In contrast, rival Michael Kors‘ Capri gave a weak forecast a day earlier as its grapples with a turnaround plan after a failed $8.5 billion merger with Tapestry last year.
Tapestry posted net sales of $2.20 billion for the quarter ended December 28, compared with analysts’ estimates of $2.11 billion, according to data compiled by LSEG.
The company now expects revenue of about $6.85 billion for the fiscal year 2025, compared with its prior target of more than $6.75 billion. Analysts on average estimated revenue of 6.76 billion, according to data compiled by LSEG.
