Investing – Shares of Capri Holdings (NYSE:CPRI), the company behind luxury brands like Michael Kors, Versace and Jimmy Choo, rose nearly 4% Wednesday after the company gave an upbeat outlook for the ongoing financial year 2022.
The company forecast revenue for the year to be $5.1 billion, almost 26% higher than $4.1 billion it booked in year ended March 27, 2021.
Capri said Michael Kors, its largest brand contributing 72% of its total revenue, will undertake a price hike this fall and spring next year, according to Reuters.
A Reuters report said the company plans to further Michael Kors's appeal as a more luxurious brand in North America with less promotional merchandise on shelves by curtailing the amount of supply.
The emphasis comes as the brand's about 4% sales decline in the fourth quarter was in contrast to that at its Versace and Jimmy Choo businesses, which grew 10% and 16%, respectively, Reuters said.
It forecast the company’s adjusted operating margin at 14% and diluted earnings per share of approximately $3.70 to $3.80 for the year.