Michael Kors owner Capri Holdings Ltd raised its full year revenue and profit forecasts on Wednesday, as the company rides a boom in demand for luxury handbags and apparel in the United States and Europe.

Shares of the company, which also owns Versace and Jimmy Choo, rose 5.7 percent in premarket trading.

Capri’s better-than-expected sales follows similar reports from European peers LVMH, Burberry, and Prada which have shown a strong rebound from the worst troughs of the Covid-19 pandemic, thanks to a desire among cooped-up consumers to spoil themselves with high-end fashion.

The company’s total revenue rose 24 percent to $1.61 billion in the third quarter ended Dec. 25, helped also by higher prices and fewer promotions. Analysts had estimated revenue of $1.47 billion, according to IBES data from Refinitiv.

Capri now forecasts fiscal 2022 revenue of $5.56 billion, compared with its prior estimate of about $5.4 billion. It lifted its full year profit per share forecast to $6, from its prior estimate of about $5.30 per share.

The company also projected fiscal 2023 revenue of about $6.1 billion, above analysts estimates of $5.97 billion.

By Ananya Mariam Rajesh; Editor: Uttaresh.V

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Capri Holdings Waves off Cost Fears With Profit Forecast Raise

Michael Kors owner Capri Holdings Ltd raised its annual profit forecast above Street estimates, shrugging off fears about inventory delays and higher costs, and sending its shares up about 10 percent in premarket trade.