Shares of Tapestry, Inc ( TPR ). , a company that owns accessories and lifestyle brands such as Coach, Kate Spade, and Stuart Weitzman, are trading higher on Thursday.

The company reported fourth-quarter adjusted earnings per share of 92 cents, beating the analyst consensus of 88 cents.

Quarterly sales of $1.59 billion (down 2%) beat the $1.58 billion estimate.

In North America alone, the company drove customer engagement by acquiring over 6.5 million new customers during the year, more than half of whom were Gen Z and Millennials.

Gross profit totaled $1.19 billion, while gross margin was 74.9%, which included operational improvements, a benefit of approximately 90 basis points from lower freight expense, as well as FX tailwinds.

On a non-GAAP basis, operating income was $262 million, while operating margin was 16.5%. 

Cash and equivalents and short-term investments totaled $7.20 billion, and total borrowings outstanding were $7.24 billion.

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Inventory totaled $825 million, better than expected and 10% below last year’s $920 million, indicating effective inventory control and a shift in receipt timing to the fiscal first quarter of 2025.

In fiscal 2025, Tapestry said it expects to maintain its annual dividend rate of $1.40 per common share. The company declared a quarterly cash dividend of 35 cents per common share, payable on September 23.

Outlook: Tapestry anticipates FY25 revenue of around $6.7 billion, slightly below the $6.8 billion estimate, and expects EPS between $4.45 and $4.50, compared to the $4.49 estimate.

Price Action: TPR shares are trading higher by 8.01% to $41.00 premarket at last check Thursday.

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