Tapestry, Inc. (NYSE: TPR) reported record fiscal second-quarter results that significantly exceeded analyst expectations, driven by exceptional performance from its Coach brand. Shares rose more than 8% intra-day on Thursday.

The luxury accessories company posted adjusted earnings per share of $2.69, far above the consensus estimate of $2.19. Revenue climbed 14% year over year to $2.5 billion, exceeding expectations of $2.29 billion. On a pro forma basis, excluding the divested Stuart Weitzman business, revenue increased 18%.

Coach led performance with sales surging 25% to $2.14 billion, fueled by strong handbag demand and mid-teens growth in both unit volumes and average selling prices. This strength offset a 14% revenue decline at Kate Spade, which generated $360 million in sales.

Profitability also improved sharply, with non-GAAP operating margin expanding 390 basis points to 28.8%. Gross margin increased 110 basis points to 75.5%, supported by operating leverage and improved product mix.

Regionally, revenue rose 17% in North America, 35% in Greater China, and 27% in Europe on a pro forma basis.

Given the strong results, Tapestry raised its full-year outlook and now expects revenue to exceed $7.75 billion, up from prior guidance of $7.3 billion. The company also lifted its earnings forecast to $6.40 to $6.45 per share, well above its previous range of $5.45 to $5.60.