Michael Kors-owner Capri Holdings Ltd beat quarterly revenue estimates on Tuesday, helped by unwavering demand for luxury goods from higher-income consumers who remain largely unaffected by rising prices.
The effects of 40-year-high inflation has shown little, if any, impact on middle- and high-income households who have been spending on designer labels since the return of socializing and will continue to do so undeterred by the economic crisis, Reuters said.
In contrast, low-income households have been hit hard by inflation because a large portion of their income is spent on essential items ranging from food to fuel and accommodation.
The company's total revenue rose 8.5% to $1.36 billion in the first quarter ended July 2, beating analysts' average estimate of $1.29 billion, according to IBES data from Refinitiv.
Net income for Capri, which also owns Italian fashion house Versace, fell to $203 million, or $1.40 per share, from $219 million, or $1.41 per share, a year earlier.
