June 1 (Reuters) – Capri Holdings Group raised its full-year profit forecast on Wednesday, signaling strong demand for its luxury brand Michael Kors and Versace products from wealthy customers, who return to their consumption habits.
The title of the group, which also owns the Jimmy Choo brand and has announced a new billion-dollar share buyback program, gained 5.4% to 51.39 dollars in pre-market trading.
Inflation at 40-year highs has yet to impact wealthier consumers, particularly in the United States and Europe, allowing luxury players to continue raising prices at a when other retailers, including Target Corp and Walmart Inc, are selling their products.
Sales of Michael Kors, Capri’s most important brand, rose 21.8% to $1.02 billion in the fourth quarter, while those of Versace jumped 34% to $315 million.
The group expects full-year 2023 earnings of around $6.85 per share, down from a previous estimate of around $6.60.
Capri, however, lowered its 2023 revenue forecast to $5.95 billion from around $6.1 billion due to store closures in China amid recent health restrictions against the spread of COVID. -19.
The company also saw its revenue rise 24.6% to $1.49 billion in the fourth quarter ended April 2, beating analysts’ estimates of $1.41 billion on average. dollars, according to IBES data from Refinitiv.
(Reporting Uday Sampath in Bangalore; French version Diana Mandiá, editing by Kate Entringer)