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(Reuters) -Michael Kors-owner Capri Holdings (NYSE:CPRI) 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 (EPA:PRTP)’s Gucci, Canada Goose Holdings (NYSE:GOOS) 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.
