Tapestry's record Q2 revenue driven by Coach brand sales

Tapestry (TPR) shares are seeing a boost Thursday morning after reporting fiscal second-quarter earnings results that beat revenue estimates. The luxury fashion retailer boasted growth driven by Coach sales, just one of the high-end brands in its portfolio.

Yahoo Finance’s Seana Smith and Brad Smith take a closer look at this trending stock and its full-year guidance.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Eyek Ntekim

Video Transcript

SEANA SMITH: Tapestry shares getting a boost in pre-market trading. The company beating expectations off the back of strong sales from its Coach brand. Now Tapestry also raising its full year profit outlook. We're looking at a gain of nearly 4%.

But Brad, I was reacting to this almost in real time here, talking about it's amazing to see the turnaround that's taking place, especially under their Coach brand. The strength that we are starting to see in sales, it's once again resonating with a younger audience, something that we have not seen in years.

Coach sales were up about 6.4%, over $1.5 billion. They also saw some bright spots in the recovery in China, growing in the mid teens. And that was enough to offset weakness in Kate Spade and weakness in Stuart Weitzman.

BRAD SMITH: You want to win an earnings report released, add JLo to it. That's exactly what Tapestry did. For all the folks out there who haven't checked this one out, we checked it out for you here. Record second quarter revenue, the company talking about. And they also raised that outlook as you were bringing up a moment ago.

One of the huge things to continue to look across, though, is the regions here. International revenue growth, 12%. But gains across key regions they talked about, 19% in greater China. You pair that with some of the other spending data we see coming out of the region, people are buying bags and shoes apparently. Also in Japan, you saw growth there of 6%, and then 9% in some of the other Asia is how they kind of round it out. And then 11% in Europe as well here.

So, of course, a lot of focus on how they're performing in different markets. Also the omnichannel experiences, DTC revenue increase by about 4%.

SEANA SMITH: Yeah, certainly.