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Michael Kors: The sartorial star of Wall Street

August 14, 2012: 11:24 AM ET

The luxury business is booming. Or at least it is for Michael Kors (KORS), the lifestyle brand founded by the Project Runway judge and fashion mogul of the same name.

In its second quarterly report as a public company, Michael Kors (the company) said earnings nearly tripled, easily surpassing forecasts. Sales surged 71% and the Hong Kong-based company also raised its outlook. Investors cheered the results. Shares of Michael Kors surged 13% Tuesday morning.

Michael Kors has been a star performer in an otherwise uneven market for high-end fashion companies. The stock has more than doubled since the company went public last December. By contrast, shares of rival luxury retailer Ralph Lauren (RL) have gained 11% this year. Coach (COH), another competitor, is down 8% so far this in 2012.

On StockTwits, most traders were singing Michael Kors' praise.

ldrogen: Consumer retail market just so bifuricated, high end premium stuff like $KORS and $UA crushing it, low end doing well, middle sucking wind.

retail_guru: $KORS brand benefiting from rising awareness, floor space at department stores & company stores. Q2 comps guided to 30% vs street at 20%!

Slicyman: $KORS--great qtr; for those neg on valuation--cheap isn't so cheap when eps estimates fall; expensive isn't expensive when estimates rise.

Related: The dismal state of luxury

BrianSozzi: Investor Tip: Don't ignore the tells. Fossil benefited from Michael Kors, Coach's same-store sales said "share loss." $KORS $COH $$.

odyssea: $KORS $EL should fade after blow off top just like $RDEN did earnings day Lipsick indicator in full effect IMO watching for pull back.

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Ben Rooney
Ben Rooney
Staff writer, CNNMoney

Ben Rooney is a staff writer for CNNMoney. He covers the European debt crisis and other international finance stories, in addition to writing about stocks, bonds, investing and other Wall Street-related news. Follow Ben on Twitter: @ben_rooney

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