Tapestry (NYSE:TPR) raised its full-year outlook after topping analyst expectations for its fiscal third quarter.
Tapestry reported EPS of $0.78 on revenue of $1.51 billion, beating the analyst expectations for earnings of $0.60 on sales of $1.44B. The adjusted gross margin rose 290 basis points year-over-year to 72.8%, beating the consensus at 70.7%.
The company also made progress on inventory, which stood at $934.1M at the end of the quarter, easily ahead of the expected $1.13B.
Following the Q1 outperformance, Tapestry increased its forecast so it now expects $6.7B in full-year sales, up from the prior $6.6B and ahead of the expected $6.63B.
The Company said it continues to expect to return approximately $1.0B to shareholders in 2023.
"We delivered solid revenue gains, expanded both gross and operating margin, and drove robust earnings growth," the company said in a press release.
Goldman Sachs analysts are "encouraged by TPR’s solid F3Q result and guidance raise" and expect the stock to outperform as a result.
Shares are up 9.6% in pre-market Thursday.