Business

Shares of Capri Holdings, the parent company of luxury accessories brands Michael Kors, Jimmy Choo and Versace, soared more than 9 percent Wednesday on the heels of what investors saw was an upbeat earnings report.

CEO John Idol said in a statement the company expects to deliver both double-digit revenue and adjusted earnings-per-share growth for the full year.

The Jimmy Choo brand performed strongly during the latest quarter, while the company continues to work to get sales at handbag brand Michael Kors back to growth, Idol said. The company, formerly known as Michael Kors, changed its name to Capri after it acquired Versace in a $2.1 billion deal late last year.

Capri reported third-quarter net income in fiscal 2019 of $199.6 million, or $1.33 per share, compared with $219.4 million, or $1.42 per share, a year ago. Excluding one-time items, it had earnings per share of $1.76, ahead of expectations for $1.58, based on a poll of analysts by Refinitiv.

It had quarterly sales of $1.44 billion, slightly short of expectations for $1.46 billion. Sales at Michael Kors stores open for at least 12 months were down 2.4 percent, however, and the company said Michael Kors wholesale revenue was down 8.3 percent.

Despite the stock pop on Wednesday, not all analysts who cover the company are sold on its progress.

“We continue to see some reservations with the Capri story coming away from this morning’s earnings release,” Telsey Advisory Group analyst Dana Telsey said in a note to clients, calling out the poor performance of the Michael Kors brand as one of those.

“Our view is that a plan for flat earnings through next fiscal year, while the underlying Michael Kors business has not shown signs of topline upside, may continue to ultimately weigh on valuation,” she said.

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