Tapestry (TPR) - Get Free Report, owner of such brands as Kate Spade and Coach, climbed Thursday after the fashion company beat Wall Street's fiscal first-quarter earnings expectations, raised its guidance and announced a $1 billion share repurchase program.
Shares of the New York company were up $5.61 to $45 in premarket trading.
Tapestry reported net income of $277 million, or 80 cents a share, compared with $232 million, or 83 cents a share a year ago. Adjusted earnings came to 82 cents a share, well ahead of the FactSet consensus calling for 70 cents a share.
Sales totaled $1.48 billion, up 26% from a year ago, and beating the FactSet consensus of $1.43 billion.
Looking ahead, Tapestry said it is raising its guidance and now expects fiscal 2022 revenue of $6.6 billion, up from its prior outlook of $6.4 billion.
The company forecast annual earnings of $3.45 to $3.50 a share, ahead of prior guidance of between $3.30 and $3.35 a share.
FactSet's consensus calls for revenue of $6.4 billion and earnings of $3.32 a share.
'We delivered another quarter of solid performance, reflecting strong customer engagement and increased demand for our brands," CEO Joanne Crevoiserat said in a statement.
"Importantly, revenue trends accelerated compared to pre-pandemic levels driven by North America, as well as continued growth in Digital and China - two key drivers of long-term opportunity."
In addition, the company approved a $1 billion share repurchase program, doubling the prior expectation for $500 million.
As a result, Tapestry said it expects to return about $1.25 billion to shareholders in fiscal 2022. The company also declared a quarterly dividend of 25 cents a share.
"While supply chain challenges persist due to the global pandemic," Crevoiserat said, "we’re remaining agile and taking deliberate actions to meet growing consumer demand."