Michael Kors parent Capri Holdings Ltd on Friday raised its annual revenue forecast for the second time this year after beating Wall Street estimates for first-quarter revenue, as shoppers splurge on its high-end clothes and bags.

The luxury retailer, which had earlier raised its outlook in late June, expects total full-year revenue of about $5.3 billion. Analysts were expecting revenue of $5.2 billion, according to IBES data from Refinitiv.

The company’s shares gained 1.9 percent in premarket trading.

After weathering a pandemic-led slump last year, the global luxury goods industry is betting that shoppers will use their record savings to buy more high-end fashion as vaccinations allow social events and parties to resume.

Capri, however, said its outlook did not account for any significant additional store closures, extensions of closures, or new government restrictions that could further affect traffic and sales trends.

Revenue rose to $1.25 billion in the first quarter ended June 26 from $451 million a year earlier, the Versace and Jimmy Choo owner said.

Analysts on average had expected $1.12 billion, according to IBES data from Refinitiv.

By Mehr Bedi; Editor: Sriraj Kalluvila

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