Tapestry’s stock surges toward a 6-month high as strong Coach sales lead to earnings beat, raised profit outlook

Shares of Tapestry Inc.
TPR,
-1.59%
surged 4.1% toward a six-month high in premarket trading Thursday, after the parent of Coach and Kate Spade fashion brands reported fiscal second-quarter results that beat expectations and raised its full-year profit outlook, amid strength in Coach sales. Net income for the quarter to Dec. 30 was $322.3 million, or $1.39 a share, compared with $329.9 million, or $1.36 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $1.63 beat the FactSet consensus of $1.46. Sales grew 2.9% to $2.08 billion, above the FactSet consensus of $2.06 billion, as Coach sales increased 6.4% to $1.54 billion, Kate Spade sales declined 6.1% to $460.4 million and Stuart Weitzman sales fell 3.7% to $82.2 million. For fiscal 2024, the company raised its EPS guidance range to $4.20 to $4.25 from $4.10 to $4.15 but kept its revenue guidance intact at “approximately” $6.7 billion. The stock has soared 46.9% over the past three months through Wednesday, while the S&P 500
SPX,
+0.82%
has gained 14%.