Ralph Lauren Corp on Tuesday forecast higher sales and improved margins for the year as demand for its luxury clothing and accessories from its biggest markets in North America and Europe stays strong.

The spending power of higher-income customers has stayed unaffected by inflation in prices of essentials, and they are now splurging on fashion as they attend more social events with a broader easing of Covid-19 restrictions across the globe.

Luxury brand Ralph Lauren, which has raised prices to make up for increased freight and product costs, forecast fiscal 2023 gross margin to increase 30 to 50 basis points on a comparable, constant currency basis.

The 55-year-old apparel and footwear brand also forecast revenue to increase in high single digits, compared with Wall Street’s expectation of a 3.6 percent increase, according to IBES data from Refinitiv.