Michael Kors is cashing in on a rebound in the luxury business as the jet-set starts to splurge again.
The high-end retailer reported earnings that blew past expectations early Wednesday as sales of bespoke handbags and flashy watches bounce back.
Shares of Michael Kors (KORS) rose about 3% in afternoon trading, despite a broad-selloff on Wall Street.
While the company offered cautious guidance, investors on StockTwits were still impressed with how strong sales have been.
The luxury business has been booming recently, particularly in overseas markets.
Tiffany's (TIF) reported strong results Tuesday, helped by robust demand for jewelry in Japan. Coach (COH) said last month that global sales were up in the first quarter, thanks to a 40% rise in China.
Some traders said the stock was held back Wednesday by losses in the broader market. Michael Kors shares have surged 130% since the Hong Kong-based company went public in 2011.
The company's founder and namesake is perhaps best known as a former judge on reality fashion show Project Runway. But the brand seems to resonate with consumers who aspire to the finer things in life, like private jets.
The company's management mentioned the phrase jet-set at least eight times during a conference call on Wednesday, notes one trader.
That's in contrast to Coach, another maker of high-end leather goods, which is more yacht-set than jet-set. But isn't all this talk about the jet-set kind of annoying?
Coach is back in the game! Shares of the luxury handbag maker jumped 10% Tuesday after the company blew past earnings and revenue expectations thanks to solid sales growth around the world.
Overall revenue climbed 7% during the fiscal third quarter to $1.19 billion, with sales rising 7% in North America and 6% in international markets. Sales in China were among the strongest, climbing a whopping 40%.
"We're pleased with...the progress we're MOREHibah Yousuf - Apr 23, 2013 12:01 PM ET
"As you know in fashion, one day you're in. And the next day, you're out." That's one of Heidi Klum's catchphrases on "Project Runway." You can say the same about stocks. And for now, Ralph Lauren is decidedly in.
Shares of Ralph Lauren (RL) galloped (see what I did there) to a more than 7% gain on Wednesday after the company reported earnings that topped forecasts and issued a solid sales MOREPaul R. La Monica - Feb 6, 2013 12:08 PM ET
Ahead of Black Friday and the holiday shopping season, some retailers are looking rosy.
Michael Kors (KORS), Dicks Sporting Goods (DKS), TJ Maxx (TJX), Saks (SKS) all reported their latest quarterly results Tuesday. Shares of each moved higher. Home Depot (HD), which isn't as much of a Black Friday beneficiary, also posted strong results and cited the ongoing housing recovery. Shares of Home Depot and Dicks Sporting Goods each jumped MOREMaureen Farrell - Nov 13, 2012 2:25 PM 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 MOREBen Rooney - Aug 14, 2012 11:24 AM ET
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