Coach owner’s shares jump after raising full-year earnings outlook

Bloomberg

Tapestry Inc shares jumped the most since November after the high-end retailer raised its full-year earnings outlook, citing more moderate currency headwinds and a sales pickup in China.
The Coach owner now sees earnings per diluted share in the range of $3.70 to $3.75. That’s up from its previous range of $3.60 to $3.70 and above the average estimate compiled by Bloomberg of $3.65.
While sales in the most recent quarter fell sharply in China as expected, executives said they are currently seeing a strong rebound.
The company expects revenue of $6.6 billion in the current fiscal year, in line with estimates and at the higher end of a previous range of $6.5 billion to $6.6 billion.
Tapestry reported revenue in the three months that ended on December 31 of $2.03 billion, roughly in line with analysts’ estimates. The company also beat forecasts for its gross margin, which came in at 68.6% versus an estimate of 67.7%, on lower freight expenses.
The shares rose 6.4% in New York. The stock has risen 20% for the year so far.