(Reuters) – Capri Holdings Group raised its full-year profit forecast on Wednesday, signaling strong demand for its luxury brands Michael Kors and Versace products from high-net-worth customers returning 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)
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