Tapestry reported adjusted earnings per share of $2.69 for its fiscal second quarter, surpassing analyst expectations by 23% and marking the highest quarterly EPS in company history. Total revenue grew 14% year-over-year to $2.5 billion, fueled by an 18% increase on a pro forma basis that excludes the recently divested Stuart Weitzman business. The beat reflects broad-based strength across key product lines and geographies, setting a new benchmark for the company’s quarterly results.

Sales at the Coach division soared 25% to $2.14 billion, driven by robust demand for handbags, which saw mid-teens growth in both unit volumes and average selling prices. This outperformance more than offset a 14% decline in Kate Spade sales, which totaled $360 million. The Coach rebound was powered by targeted product innovation, including the popular Tabby collection, and accelerated customer engagement efforts that delivered a 35% increase in Greater China revenues and double-digit gains in other Asia Pacific markets.

Non-GAAP operating margin expanded by 390 basis points to 28.8%, driven by a stronger product mix and enhanced operating efficiencies. Gross margin improved by 110 basis points to 75.5%, supported by favorable sourcing dynamics and disciplined inventory management. These margin gains underscore the company’s ability to leverage scale and brand strength to convert higher sales into outsized profitability.

In response to the second-quarter outperformance, management raised its full-year revenue outlook to over $7.75 billion, up from the prior guidance of $7.3 billion. Adjusted earnings per share targets were increased to a range of $6.40 to $6.45, compared with the previous forecast of $5.45 to $5.60. The company also announced plans to return approximately $1.5 billion to shareholders through dividends and share repurchases, reflecting confidence in ongoing cash flow generation and long-term growth prospects.