02:21 PM EST, 02/06/2025 (MT Newswires) -- Luxury fashion companies Tapestry (TPR) and Ralph Lauren ( RL ) on Thursday raised their full-year revenue outlooks after logging stronger-than-projected sales in the holiday quarter.

Tapestry now expects its fiscal 2025 revenue to rise about 3% from a year earlier versus its prior growth outlook of 1% to 2%. It projects earnings at $4.85 to $4.90 a share, compared with its previous estimate of $4.50 to $4.55.

The outlook embeds the expectation for an additional 10% tariffs on goods imported from China into the US, which is likely to have an "immaterial impact" on full-year results, Tapestry said.

Tapestry's second-quarter adjusted EPS jumped to $2 from $1.63 a year earlier, while net sales increased to $2.2 billion from $2.08 billion. Analysts polled by FactSet were looking for $1.75 and $2.11 billion, respectively. Tapestry described the global economic and consumer backdrop as "complex."

The company said it saw a sharp constant currency gain in Europe, as well as a double-digit percentage sales gain at the Coach brand. Revenue at the Kate Spade and Stuart Weitzman brands declined year-over-year in the quarter through Dec. 28.

"Our success is clearly reflected in the accelerated top- and bottom-line gains we achieved, resulting in record quarterly revenue and adjusted (EPS)," Tapestry Chief Executive Joanne Crevoiserat said in a statement. The company said it expects to return more than $2 billion in fiscal 2025 to shareholders via dividends and share buybacks.

Separately, Ralph Lauren ( RL ) said it now expects fiscal 2025 constant currency revenue to rise between 6% and 7%, up from its prior growth outlook range of 3% to 4%. Full-year capital expenditures are now pegged at $200 million to $250 million versus $250 million to $300 million previously projected.

"With regards to the recently announced US tariffs on goods from China, Mexico, and Canada, we currently anticipate a minimal annual impact," Chief Financial Officer Justin Picicci said on an earnings call, according to a FactSet transcript. The company's management described the environment as "volatile."

Tapestry shares were up nearly 13% in Thursday afternoon trade, while Ralph Lauren ( RL ) surged 10%.

Ralph Lauren's ( RL ) third-quarter adjusted EPS rose to $4.82 from $4.17 a year earlier, while revenue jumped 11% to $2.14 billion, topping Wall Street's views for $4.53 and $2.01 billion, respectively. For the ongoing quarter, the company expects constant currency revenue to grow 6% to 7%.

"Third-quarter results, with revenue of double-digits, exceeded our expectations in every geography across the top and bottom line," Ralph Lauren ( RL ) CEO Patrice Louvet told analysts. "Our strong first-half brand momentum and strategic investments carried into the fall holiday."

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