Luxury fashion group Capri Holdings, the parent company of Michael Kors, has projected annual profit exceeding Wall Street estimates, driven by a strategic overhaul to revitalize its key brands. The New York-based firm's shares rose 1% in premarket trading, despite a 24% decline in its stock price this year amid broader demand declines.The company's turnaround strategy focuses on selling its bags and shoes at full price and fostering innovation to attract a broader, wealthier customer base. The New York-based firm's shares rose 1% in premarket trading, despite a 24% decline in its stock price this year amid broader demand declines (Getty)Capri Holdings also announced plans to recover $65 million in tariffs paid under the International Emergency Economic Powers Act, which it has recorded as a refund.It expects fiscal year 2027 profit per share of about $2.15, compared with analysts' expectation of $1.83 per share, according to data compiled by LSEG.In February, Capri reported a sixth straight quarter of sales declines for its key Michael Kors brand, dragging the company's shares down 10% at the time despite a forecast bump and holiday-quarter revenue that edged past Wall Street estimates. Consumers in the U.S. have been more selective in their big-ticket discretionary spending as inflation weighs on budgets. This has shifted the focus to marketing, with some brands, such as Tapestry's Coach, seeing strong demand from younger consumers, while others, like Michael Kors, struggle.