Tapestry Inc (NYSE:TPR), the New York-based luxury brand formerly called Coach, rose 5% in early trading Tuesday as results beat forecasts.
On an underlying basis, second quarter profits rose to US306mln from US$200mln while sales rose 35% to US$1.35bn.
Published second-quarter net income was $63.2mln, or 22c per share compared to $199.7mln, or 71 cents per share for the same period last year.
Net sales for Coach totalled $1.23bln for the second fiscal quarter compared to $1.20bln a year before.
Stuart Weitzman sales rose 2% to $121.0 million, while Kate Spade global same-store sales fell 7%.
The company continues to expect revenues for fiscal 2018 to increase about 30% to US$5.9bn, with the acquisition of Kate Spade adding over US$1.2bln in revenue.
Tapestry now projects underlying earnings per share in the range of US$2.52-$2.60, an increase of about 17% to 21% for the year, including mid-to-high single accretion from Kate Spade, which was acquired in July 2017.
Shares rose US$2.59 to US$47.56.