© 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 profit forecast on Wednesday, signaling robust demand for its luxury goods as higher-income consumers return to their old shopping routines.
Shares of the company, which owns Versace and Jimmy Choo, rose about 6% to $51.51 in premarket trading.
The effects of 40-year-high inflation has yet to show any impact on affluent shoppers, especially in the United States and Europe, allowing luxury goods makers to keep raising prices at a time when other retailers, including Target Corp (NYSE:) and Walmart (NYSE:) Inc, are discounting products.
The company forecast fiscal 2023 profit of about $6.85 per share, compared with its prior estimate of about $6.60 per share.
The company’s total revenue rose 24.6% to $1.49 billion in the fourth quarter ended April 2, beating analysts’ average estimate of $1.41 billion, according to IBES data from Refinitiv.
(The story corrects to fiscal 2023 from fiscal 2022 in paragraph 2.)