Michael Kors parent Capri Holding Ltd. raised its fiscal 2022 forecast for a profit and revenue on Tuesday, betting on a surge in demand for luxury products as consumer emerging out of lockdowns look to upgrade their wardrobes.
Capri, which also owns luxury brands Versace and Jimmy Choo, is benefiting from a bump in online sales as consumers with record saving are splurging on handbags ans shoes.
‘As the world reopens, we are pleased to be seeing better than expected performance from all three of our iconic fahion luxury houses’, Chief Executive Officer John Idol said.
Bigger rivals LVMH, Hermes, and Gucci – owner Kering have also benefited, with traditionally reluctant luxury product seelers investing heavily to build their online presence.
Capri expects annual revenue of about $5.15 billion, compared to previous forecast of about $5.10 billion and adjusted earning to be between $3.80 and $3.90 per share $3.70 to $3.80 earlier.
Analysts are projecting revenue of $5.15 billion for the year started April and earnings of $3.87 per share, according to IBES data from Refinitiv.