Michael Kors-owner Capri cuts sales forecast on slow China recovery

Follow us on Google News:

(Corrects first paragraph to say company had lowered its sales forecast, not profit expectations)


(Reuters) -Michael Kors-owner Capri Holdings Ltd lowered its annual sales forecast on Wednesday, blaming a slow demand recovery in the key Chinese market due to persistent COVID-19 curbs and uncertainty about the global economy.

Luxury goods companies have managed to pass on higher costs to affluent shoppers but China remains a sore spot as Beijing's "dynamic zero-COVID" policy hampers the return of consumers to high-fashion stores. COVID disruptions in China have also weighed heavily on other brands such as Kering's Gucci, Canada Goose Holdings and L'Oreal.

Capri forecast fiscal 2023 revenue of $5.7 billion, compared with its prior estimate of about $5.85 billion.

Total revenue rose 8.6% to $1.41 billion in the second quarter ending Oct. 1, slightly above analysts' average estimate of $1.40 billion, according to IBES data from Refinitiv.

(Reporting by Uday Sampath in Bengaluru; Editing by Vinay Dwivedi)

Disclaimer

The above content is directly sourced from Reuters under a contractual arrangement. The content is being provided as a convenience and for informational purposes only; and does not constitute an endorsement or approval by Kalkine Media of any of the products, services, or opinions of the organization or individual. The user is apprised that Kalkine Media bears no responsibility for the accuracy, legality, or content of Reuters, any external sites, or for that of subsequent links. The user is requested to contact Reuters directly for answers to questions regarding the content. Please note that Kalkine Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Featured Articles

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK