(Reuters) – Coach parent Tapestry Inc raised its full-year revenue and profit forecast on Thursday as consumers splurge on luxury handbags and apparel in the United States and Europe.
Rivals Capri, Ralph Lauren and Europe’s LVMH also benefited from a rebound in demand for high-end fashion as cooped-up customers returned to social events and offices.
Luxury goods companies have been struggling with rising costs though, after the pandemic drove up labor shortages, freight charges and inflation, forcing the Kate Spade owner and its peers to raise prices in response.
The company forecast fiscal 2022 revenue of about $6.75 billion, compared with its prior estimate of nearly $6.6 billion. It expects full-year profit of $3.60 to $3.65 per share, up from $3.45 to $3.50 earlier.
Total revenue rose 27% to $2.14 billion in the second quarter ended Jan. 1, beating analysts’ average estimate of $2 billion, according to IBES data from Refinitiv.
(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Devika Syamnath)
