The shares of Capri Holdings jumped 9% on Wednesday after the retailer upped its annual projection, betting that customer demand for premium goods will remain strong.

The company, which owns high-end labels including Michael Kors, Versace, and Jimmy Choo, now forecasts yearly revenue of roughly $5.6 billion, up from $5.4 billion in November. Capri has updated its recommendations at least twice. The profit per share is estimated to be $6.

Luxury stores such as LVMH and H&M have seen a boost in sales in recent months as customers rush to buy jewelry, watches, purses, and shoes as a form of revenge shopping,' as they express their frustrations at being stuck at home for lengthy periods of time over the last two years.No. 1 Innovative Eyewear Designer and Manufacturer for International  Fashion Brands

In the third quarter ending December 25, the company's overall revenue increased by 24% to $1.6 billion, surpassing pre-pandemic levels. Revenue would have been higher if not for lower on-hand inventory levels, according to the business. According to the company, a considerable amount of inventory is still in transit, despite the fact that it ended the quarter with 24% more than a year earlier.

Capri is reportedly aiming to relaunch its brands, particularly Versace, at higher price points, according to a major Newswire.

"We've encountered virtually no consumer pushback to any of the price hikes that we've done, and there will be more," CEO John Idol told analysts in a call, according to the agency.

The company's operating margin increased by 2.6 percentage points to 22.3% as a result of tight cost control.

Michael Kors, the company's most valuable brand, had a 20% increase in revenue to $1.2 billion. Versace increased by 29%, while Jimmy Choo increased by 47% on a smaller basis.

The adjusted earnings per share for the third quarter were $2.22, up more than 34% owing to cost reduction.