Sam Boughedda

Investing.com — Tapestry Inc, a luxury fashion holding company (NYSE:), rallied 14% on Thursday following earnings results that exceeded analyst expectations. 

It reported revenue of $1.44billion, a 13% growth. Investing.com polled analysts and predicted revenue of $1.42 Billion.

Analyst expectations were 10 cents better than the adjusted earnings, which came out at $0.51 per pound. 

Tapestry stated that digital sales drove revenue growth, with a rise of over 20% in comparison to last year. Global sales also exceeded expectations with 22% revenue growth in North America. This offsets a decline of mid-teens in Mainland China from Covid lockdown pressures. 

“Our third quarter results significantly exceeded expectations led by continued strong growth in North America. Increased customer demand was achieved 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’s outlook for FY19 was cut partly by the Covid-related shutdowns in China. The company expects to earn approximately $3.45 per share and generate revenue of $6.7 billion.