(Reuters) -Capri Holdings beat estimates for quarterly profit and revenue on Wednesday, helped by its turnaround strategy and improving demand for the Michael Kors owner's luxury handbags and footwear despite a broader retail slowdown.
Its shares rose about 4% in premarket trading as the company also forecast second-quarter revenue above estimates.
Investors have been hoping for signs of strength from Capri, as its shares have lost nearly 44% over the past year and competitors have gained more market
share.
Capri is in the middle of a turnaround and saw a rebound in demand for brands including Michael Kors and Jimmy Choo, after persistent sales declines in recent quarters.
The company said in May it expects U.S. tariffs to raise its fiscal 2026 cost of goods sold by about $60 million. It plans to offset the impact through sourcing optimization, cost efficiencies with partners, and price hikes.
Several retailers, including apparel and footwear makers, have resorted to increasing product prices to counter the impact from the Trump administration's unpredictable trade policies that have disrupted businesses and supply chains, and increased costs.
Capri reported profit of 50 cents per share, compared with analysts' estimates of 13 cents per share, per data compiled by LSEG.
Its net revenue fell 6% to $797 million. Analysts estimated a 25.7% decline to $793.1 million.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Devika Syamnath)
