Investing.com -- Tapestry shares jumped more than 4% in Thursday premarket trading after the fashion group delivered a sharp beat on third-quarter earnings and revenue and raised its full-year outlook.

The company earned $1.66 per share in the quarter, well ahead of the $1.28 analyst estimate, on revenue of $1.92 billion, up 19% in constant currency and comfortably above the $1.76 billion consensus.

Adjusted gross margin expanded 80 basis points year-over-year to 76.9%, while adjusted operating margin surged 490 basis points to 22.4%.

“Our third quarter outperformance reflects the compounding benefits of our Amplify strategy, as we bring creativity, craftsmanship, and value to more consumers around the world," said Joanne Crevoiserat, CEO of Tapestry.

"We are raising our outlook for the fiscal year, underscoring the power of Tapestry and our commitment to driving durable growth and long-term shareholder value.”

Tapestry now expects earnings of approximately $6.95 per diluted share, representing growth of over 35% versus the prior year and up from its previous guidance of $6.40–$6.45.

Revenue guidance was raised to $7.95 billion from a prior outlook of over $7.75 billion, exceeding the $7.83 billion consensus. Operating margin is now seen at approximately 23%, implying roughly 300 basis points of expansion versus the prior year, up from earlier guidance of around 180 basis points.

The company also lifted its adjusted free cash flow outlook to approaching $1.6 billion from approximately $1.5 billion.

Tapestry also said it plans to repurchase approximately $1.3 billion in common stock in fiscal 2026, up from a prior target of $1.2 billion.