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Shares of the company, which also owns Jimmy Choo, rose 5.4% to $51.39 in premarket trading as Capri announced a new $1 billion share buyback program.
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:TGT) and Walmart (NYSE:WMT) Inc, are discounting products.
Ralph Lauren Corp (NYSE:RL) and high-end retailer Nordstrom Inc (NYSE:JWN) had also flagged strong demand for high fashion last month.
Sales at Michael Kors, Capri’s biggest brand, rose 21.8% to $1.02 billion in the fourth quarter, while Versace sales jumped 34% to $315 million.
Capri forecast fiscal 2023 profit of about $6.85 per share, compared with its prior estimate of about $6.60 per share.
However, the company lowered its 2023 revenue forecast to $5.95 billion from about $6.1 billion, as the COVID-19 lockdowns in China resulted in store closures.
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.
On an adjusted basis, Capri earned $1.02 per share, above estimates of 82 cents per share.
