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Michael Kors Owner Capri Raises Full-year Profit Forecast

Michael Kors Owner Capri Raises Full-year Profit Forecast

Wednesday, 1 June, 2022 - 11:00
People walk by a Michael Kors store in Lakewood, Colorado June 1, 2016. REUTERS/Rick Wilking/File Photo

Michael Kors owner Capri Holdings 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, Reuters said.

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 and Walmart Inc, are discounting products.

The company forecast fiscal 2022 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.

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