Tapestry Inc. (NYSE: TPR) on Tuesday reported sales and earnings that beat estimates, driven by strong sales from its Coach brand.

Tapestry said net sales rose 35 percent to $1.79 billion in the quarter ended December 30, 2017. Analysts polled by Thomson Reuters had estimated revenue of $1.77 billion.

Net income was $63 million, or 22 cents per share, in the second quarter of fiscal 2018. Excluding certain items, the company earned $1.07 per share, also beating analysts’ estimates of 89 cents.

Tapestry acquired Kate Spade last year. It is now the parent company of f Coach, Kate Spade and Stuart Weitzman.

Victor Luis, Chief Executive Officer of Tapestry, Inc., said “Our second quarter performance exceeded our expectations, driven by a return to growth for Coach, sales gains at Stuart Weitzman and the contribution of Kate Spade as we continued to make progress on the brand’s integration. Importantly, Coach comparable store sales rose globally, led by outperformance in North America, reflecting our strong holiday offering and improved inventory mix, all supported by festive marketing campaigns. In addition to the top line gains, we drove significant operating income growth on better-than-expected profitability metrics, notably gross margin, while expenses were well controlled and also benefitted from timing shifts.”

The better-than-expected financial result is driven by strong result from its Coach brand. Global same-store sales rose 3 percent due to robust growth in global e-commerce.

While Kate Spade comparable store sales declined 7 percent. But it still better than analysts’ projection of 8.84 percent decline.

Tapestry shares rose 5.5 percent to $47.48 in the early trading in New York on Tuesday.