Capri raises revenue forecast on firm demand for luxury handbags, apparel By Reuters

© Reuters. FILE PHOTO: People walk by a Michael Kors store in Lakewood, Colorado June 1, 2016. REUTERS/Rick Wilking

(Reuters) – Michael Kors owner Capri Holdings (NYSE:) 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 (OTC:) 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.

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