Michael Kors owner Capri Holdings Ltd raised its full-year profit forecast on Wednesday, signalling robust demand for its luxury goods as higher-income consumers return to their old shopping routines.
Shares of the company, which owns Versace and Jimmy Choo, rose about 6 percent to $51.51 in premarket trading.
The effects of 40-year-high inflation has yet to show any impact on affluent shoppers, especially in the United States and Europe, allowing luxury goods makers to keep raising prices at a time when other retailers, including Target Corp and Walmart Inc, are discounting products. The company forecast fiscal 2023 profit of about $6.85 per share, compared with its prior estimate of about $6.60 per share.
The company’s total revenue rose 24.6 percent to $1.49 billion in the fourth quarter ended April 2, beating analysts’ average estimate of $1.41 billion, according to IBES data from Refinitiv.
By Uday Sampath; Editor: Amy Caren Daniel
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