Michael Kors parent Capri Holdings Ltd raised its fiscal 2022 forecast for profit and revenue on Tuesday, betting on a surge in demand for luxury products as consumers emerging out of lockdowns look to upgrade their wardrobes.

Capri Holdings, which also owns luxury brands Versace and Jimmy Choo, is benefiting from a bump in online sales as consumers with record savings are splurging on handbags and shoes.

“As the world reopens, we are pleased to be seeing better than expected performance from all three of our iconic fashion luxury houses,” chief executive John Idol said.

Bigger rivals LVMH, Hermes and Gucci-owner Kering have also benefited, with traditionally reluctant luxury product sellers investing heavily to build their online presence.

Capri expects annual revenue of about $5.15 billion, compared to previous forecast of about $5.10 billion and adjusted earnings to be between $3.80 and $3.90 per share, from $3.70 to $3.80 earlier.

Analysts are projecting revenue of $5.15 billion for the year started April and earnings of $3.87 per share, according to IBES data from Refinitiv.

By Nivedita Balu; Editor: Rashmi Aich