July 30, 2021
Michael Kors’ parent company, Capri Holdings, raised its second annual forecast on Friday after shoppers bought large quantities of luxury clothing and bags, falling below Wall Street’s quarterly earnings estimates.
The global luxury goods industry is confident that rapid post-vaccination social events and resumption of parties will allow more shoppers to spend more on fashion after being locked up in their homes for over a year.
With Michael Kors’ revenue nearly tripled, its share rose 16%, the biggest boost to total sales, demonstrating a recovery from the pandemic downturn.
“Clearly, the world will continue to face challenges as the pandemic progresses, including regional closures and temporary restrictions,” said John Idol, CEO.
The company’s European peer Louis Vuitton-with owner LVMH Kering Rebounds have also been reported.
LVMH sets record profitability and profitability Fendi, Loewe and Celine brand Kering said Yves Saint Laurent has reached a critical scale with sales recovering in all regions.
Meanwhile, Capri raised its annual sales forecast to about $ 5.3 billion. This is only about a month after the $ 5.15 billion forecast, but warns that Delta variants could undermine expectations for a rapid recovery in Europe.
However, the outlook did not take into account significant additional store closures, extended closures, or new government regulations that could impair traffic and sales trends.
Total revenue in the first quarter was $ 1.25 billion, almost tripled compared to a year before the store was severely closed. Excluding items, the company generated more than expected $ 1.42 in earnings per share.
© Thomson Reuters 2021 All rights reserved.
Versace’s parent Capri, Michael Kors, outperforms earnings estimate
Source link Versace’s parent Capri, Michael Kors, outperforms earnings estimate