Michael Kors owner Capri posts smaller-than-expected revenue drop

Capri Holdings posted a smaller-than-expected drop in quarterly revenue on Wednesday, helped by improving demand for the Michael Kors owner’s luxury handbags and footwear despite a broader retail slowdown.

Its shares shot up about 10% in premarket trading.
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 after persistent sales declines in recent quarters.

The company’s net revenue fell 6% to $797 million. Analysts estimated a 25.7% decline to $793.1 million, according to data compiled by LSEG.