Capri Holdings, the parent company of popular fashion brands Michael Kors, Versace, and Jimmy Choo, has raised its profit and revenue forecast for fiscal year 2022. The company is optimistic about the increasing demand for luxury products as consumers emerge from lockdowns and look to upgrade their wardrobes. With people accumulating significant savings during the pandemic, there has been a surge in online sales for luxury handbags and shoes.

CEO John Idol expressed his satisfaction with the performance of all three luxury brands under Capri Holdings. He noted that the company is experiencing better-than-expected results as the world reopens and consumer confidence grows.

This positive trend is not exclusive to Capri Holdings but is seen across the luxury fashion industry. Major players like LVMH, Hermes, and Kering (owner of Gucci) have also witnessed growth. These brands, which were previously hesitant about investing in their online presence, have now recognized the importance of e-commerce and have prioritized building their digital platforms.

Capri Holdings now expects annual revenue of approximately $5.15 billion, higher than the previous forecast of around $5.10 billion. The adjusted earnings per share are projected to be in the range of $3.80 to $3.90, compared to the earlier estimate of $3.70 to $3.80 per share. Analysts, based on IBES data from Refinitiv, predict revenue of $5.15 billion and earnings of $3.87 per share for the fiscal year starting in April.

It is evident that the luxury fashion industry is rebounding as consumers show a renewed interest in high-end products. The increased focus on e-commerce has been instrumental in driving sales for these brands. As the world continues to recover from the pandemic, Capri Holdings and other luxury fashion companies are poised to benefit from the growing demand for luxury goods.

To learn more about the luxury fashion industry’s growth and its impact on consumer behavior, check out these insightful articles:
1. How Luxury Fashion Brands Are Adapting to the Rise of E-commerce
2. Online Shopping Boosts the Luxury Fashion Sector: How Long Can It Last?