FILE PHOTO: People walk by a Michael Kors store in Lakewood, Colorado June 1, 2016. REUTERS/Rick Wilking/File Photo
November 3, 2021
(Reuters) – Michael Kors owner Capri Holdings Ltd on Wednesday raised its annual profit forecast, as it benefits from price increases and strong demand for its designer handbags and Jimmy Choo shoes, sending its shares up about 5% in premarket trade.
Pent-up demand from shoppers now venturing out as restrictions ease has boosted sales of luxury apparel and accessories.
The company is also benefiting from selling its products at full-price as well as from higher prices at Michael Kors and Jimmy Choo. It raised prices to offset inflation and surging raw material and transportation costs due to the COVID-19 pandemic.
The company forecast fiscal 2022 earnings per share of about $5.30, compared with a prior forecast of $4.50 per share.
(Reporting by Aditi Sebastian in Bengaluru; Editing by Shinjini Ganguli)
