(Reuters) – Michael Kors owner Capri Holdings Ltd raised its full-year revenue and profit forecasts on Wednesday, as the company rides a boom in demand for luxury handbags and apparel in the United States and Europe.
Shares of the company, which also owns Versace and Jimmy Choo, rose 5.7% in premarket trading.
Capri’s better-than-expected sales follows similar reports from European peers LVMH, Burberry, and Prada which have shown a strong rebound from the worst troughs of the COVID-19 pandemic, thanks to a desire among cooped-up consumers to spoil themselves with high-end fashion.
The company’s total revenue rose 24% to $1.61 billion in the third quarter ended Dec. 25, helped also by higher prices and fewer promotions. Analysts had estimated revenue of $1.47 billion, according to IBES data from Refinitiv.
Capri now forecasts fiscal 2022 revenue of $5.56 billion, compared with its prior estimate of about $5.4 billion. It lifted its full-year profit per share forecast to $6, from its prior estimate of about $5.30 per share.
The company also projected fiscal 2023 revenue of about $6.1 billion, above analysts estimates of $5.97 billion.
(Reporting by Ananya Mariam Rajesh in Bengaluru; editing by Uttaresh.V)
