Michael Kors parent Capri Holdings raises profit forecast on pent-up
© Reuters. FILE PHOTO: People walk by a Michael Kors store in Lakewood, Colorado June 1, 2016. REUTERS/Rick Wilking/File Photo
(Reuters) – Michael Kors owner Capri Holdings (NYSE:) 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.
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