By (Reuters) -Tapestry raised its annual earnings target and topped market expectations for first-quarter revenue on Thursday, as the Coach parent benefited from full-prices sales of its popular Tabby handbags.
Shares of the company were up 7% in premarket trading. They have risen about 34% so far this year.
Shoppers in the United States chose to splurge on trendy apparel and accessories even as they pare back on most non-essential purchases in the face of sticky inflation this year.
Tapestry (NYSE:TPR)’s Tabby shoulder bags and its many iterations have been a customer favorite for several years now, mostly appealing to younger customers.
Tapestry, whose pending $8.5 billion merger with Michael Kors parent Capri was blocked by a U.S. judge last month, now expects full-year earnings per share of $4.50 to $4.55, compared with its prior forecast of $4.45 to $4.50.
Tapestry reported revenue of $1.51 billion for the first quarter, while analysts estimated $1.47 billion, according to data compiled by LSEG.