By Sam Boughedda
Investing.com -- Luxury fashion holding company Tapestry Inc (NYSE:TPR) rallied 14% Thursday after it posted earnings that beat analyst expectations.
The company reported revenue of $1.44 billion, representing a 13% increase. Analysts polled by Investing.com expected revenue of $1.42 billion.
Adjusted earnings came in at $0.51 per share, 10 cents above analyst expectations.
Tapestry said that revenue growth was driven by digital sales, which rose over 20% versus last year. In addition, global sales were ahead of expectations, with revenue growth of 22% in North America, offsetting a mid-teens decline in Mainland China due to pressures from the resurgence of Covid and related lockdowns.
“Our third quarter results significantly exceeded expectations led by continued strong growth in North America. We drove increased customer demand at Coach , Kate Spade and Stuart Weitzman, reflecting the vibrancy of each of our brands, the power of our platform and our team’s successful execution of our strategic initiatives," said Joanne Crevoiserat, Chief Executive Officer of Tapestry.
Tapestry cut its outlook for the fiscal year, partly due to the impact of China's Covid-related shutdowns. They see revenue of approximately $6.7 billion, with earnings per share around $3.45.