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Tapestry raises profit guidance

Tapestry, the parent company of Coach, raised its annual profit forecast, betting on strong sales of premium handbags and a recovery in demand in China, which echoed trends seen at other luxury retailers. Despite a softer start to the year in North America, Tapestry’s sales surged 19 percent in China and 11 percent in Europe in the second quarter, with increased spending from Mainland China tourists contributing to the growth. The company’s Coach brand saw a 6 percent rise in second-quarter revenue, driven by soaring sales of its Tabby handbags. Tapestry now expects adjusted earnings per share for 2024 to be between $4.20 and $4.25, up from its previous forecast.

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