Shares of Coach parent Tapestry shot up about 15% in premarket trading after the company beat holiday-quarter sales expectations and boosted its full-year forecast.

The fashion and accessories company said it now expects full-year revenue of over $6.85 billion, which would be about 3% higher than the prior year. It expects earnings per share of $4.85 to $4.90. It had previously forecasted full-year revenue of over $6.75 billion and full-year earnings per share of between $4.50 and $4.55.

Tapestry’s strong results come less than two months after it called off a merger with Capri, after planning to appeal the blocked deal. The agreement, which companies had fought for in court, would have married America’s two largest luxury houses and put six fashion brands under one company: Tapestry’s Coach, Kate Spade and Stuart Weitzman with Capri’s Versace, Jimmy Choo and Michael Kors.

Tapestry’s results are also in sharp contrast to Capri’s. In Capri’s holiday quarter, which the company reported on Wednesday, sales of Versace and Michael Kors tumbled by double digits. CEO John Idol took some of the blame, saying that the company had made missteps — including cutting lower-priced accessories that helped bring in newer customers.

Here is what Tapestry reported for the fiscal second quarter that ended Dec. 28 compared with Wall Street’s estimates, according to a survey of analysts by LSEG:

• Earnings per share: $2.00 adjusted vs. $1.75 expected
• Revenue: $2.20 billion vs. $2.11 billion expected

Coach remained the company’s top performer in the holiday quarter, with revenue up 11% year over year. Kate Spade and Stuart Weitzman put up weaker results, with revenue declines of 10% and 15%, respectively.

On the company’s earnings call on Thursday, Tapestry CFO Scott Roe said the company’s full-year guidance includes the impact an additional 10% tariff on goods imported from China into the U.S. beginning Feb. 4. He said that is not expected to have a material effect on the company’s results, since it has very limited manufacturing in China.

Tapestry does not have any production in Canada or Mexico, he said. Roe had said on Tapestry’s early November earnings call that less than 10% of the company’s sourcing comes from China.

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