By Scott Kanowsky

Investing.com -- Tapestry, Inc. (NYSE: TPR) raised its annual earnings guidance, as strong trading over the holiday season helped the group behind luxury brands like Coach and Kate Spade post bumper second quarter results.

Adjusted earnings per share are now seen in the range of between $3.70 to $3.75, up from the company's prior outlook of $3.60 to $3.70 a share. The forecast also topped Bloomberg consensus estimates of $3.65 per share.

Revenue is expected to come in at about $6.6 billion over the fiscal 2023 period, which would represent a slight decrease year-on-year but an improvement compared to the previously expected range of $6.5B to $6.6B.

Tapestry predicted that pressures from recent fluctuations in the U.S. dollar will begin to wane by more than previously anticipated. However, revenue growth is will be "more modest" in China, a key luxury market that was hit by a wave of COVID-19 cases following the relaxation of pandemic-era rules late last year.

Undergirding this upbeat guidance was better-than-expected core profit per share of $1.36 in the second quarter. Tapestry said spending per customer picked up during the timeframe, as wealthy young shoppers remained willing to pay for items like top-dollar handbags and shoes despite a recent spike in living costs.

Outside of greater China, revenue growth at constant currency was in the low single digits. Meanwhile, sales grew by double digits in other Asian markets, Japan and Europe, making up for a 2% decline in turnover in North America and a 20% dip in China.

In a statement, chief executive officer Joanne Crevoiserat noted that the quarterly results showed resilience against a challenging macroeconomic backdrop, thanks in particular to outperformance during the key Christmas shopping season.

Tapestry confirmed that it still plans to deliver approximately $1.0B in shareholder returns over the course of the current financial year, as well as an annual dividend of $1.20 per share.

"On balance, we are encouraged by the stronger than expected result [...] in the quarter despite the incremental headwinds posed by Greater China," analysts at Goldman Sachs said in a note to clients, adding that the earnings were "notably stronger" than peer Capri Holdings, the Michael Kors-owner who reported disappointing returns earlier this week.

Shares in Tapestry jumped by more than 5% in early U.S. trading on Thursday.