Investing.com -- Shares in Tapestry (NYSE: ) rose in early U.S. trading on Thursday after the luxury retailer reported better-than-anticipated earnings in its fiscal first quarter despite lowering its revenue growth forecast. In a statement, Chief Executive Officer Joanne Crevoiserat said profits during the period were driven by "significant" gross margin expansion. Gross margin jumped by 250 basis points thanks to higher full-price sales of Tapestry's boots and bags, as well as cooling freight expenses. Net sales registered $1.51B, an increase of 3% compared to the prior year but below Bloomberg consensus forecasts of $1.54B. Slipping returns at Tapestry's Kate Spade and Stuart Weitzman labels offset resilience at its key Coach division, while the firm said the demand environment in North America was "difficult."
