Ralph Lauren Corp. forecast full-year revenue above estimates on Tuesday, as demand for its affordable luxury goods from the affluent in the United States and Europe stays strong.

Shares of the New York-based company rose 1% in premarket trading. They have fallen 23% this year.

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

The company forecast fiscal 2023 revenue to increase in high single digits on a constant currency basis, compared with Wall Street's expectation of an increase of 3.6%, according to IBES data from Refinitiv.

The 55-year-old apparel and footwear brand's net revenue rose 18% to $1.52 billion in the fourth quarter. Analysts polled by Refinitiv, on average, had expected revenue of $1.46 billion.