The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
Michael Kors owner Capri Holdings Ltd raised its full-year profit forecast on Wednesday, signalling 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 percent to $51.51 in premarket trading.
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 2023 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 percent 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.
ADVERTISEMENT
By Uday Sampath; Editor: Amy Caren Daniel
Learn more:
What’s Really Going On at Capri
Joshua Schulman’s surprise exit from the Michael Kors and Versace owner puts pressure on John Idol in his quest to build an LVMH competitor.
The Hood By Air co-founder’s ready-to-wear capsule for the Paris-based perfume and fashion house will be timed to coincide with the Met Gala in New York.
Revenues fell on a reported basis, confirming sector-wide fears that luxury demand would continue to slow.
IWC’s chief executive says it will keep leaning into its environmental message. But the watchmaker has scrapped a flagship sustainability report, and sustainability was less of a focus overall at this year’s Watches and Wonders Geneva.
The larger-than-life Italian designer, who built a fashion empire based on his own image, died in Florence last Friday.