UPDATE: Michael Kors Posts Upbeat Q3 Earnings, But Issues Weak Forecast

Shares of

tumbled more than 11% in pre-market trading after the company issued a downbeat forecast. However, the company reported better-than-expected earnings for its fiscal third quarter. The Tsim Sha Tsui, Hong Kong-based company posted quarterly net earnings of $303.7 million, or $1.48 per share, compared to $229.6 million, or $1.11 per share, in the year-ago quarter. Its revenue climbed 29.9% to $1.3 billion from $1.0 billion. However, analysts were expecting earnings of $1.33 per share on revenue of $1.3 billion. Comparable store sales surged 8.6% in the quarter. Retail net sales climbed 37.0% to $689.4 million, while wholesale net sales surged 24.4% to $573.8 million. Licensing revenue jumped 8.6% to $51.5 million in the quarter. Revenue in North America climbed 22.6% to $1.1 billion in the quarter, while European revenue jumped 72.1% to $241.4 million. Revenue in Japan surged 72.1% to $16.0 million in the quarter. Gross profit rose 29.2% to $800.1 million, while income from operations climbed to $418.5 million from $343.2 million. During the quarter, Michael Kors repurchased 5,068,813 shares for around $399.9 million. John D. Idol, the Company's Chairman and Chief Executive Officer, said, "Our third quarter marked the 13th consecutive period of growth in revenue, comparable store sales and earnings, since our initial public offering. We had a strong holiday season, with comparable stores sales performance led by double digit growth in our accessories category, both in our retail and wholesale channels. We also saw continued momentum across our operating segments and geographies driven by our compelling fashion product offering and jet-set luxury experience that resonated well with customers." For the fourth quarter, the company expects earnings of $0.89 to $0.92 per share on revenue of $1.05 to $1.08 billion. Analysts projected earnings of $0.94 per share on revenue of $1.151 billion. For the full year, Michael Kors projects earnings of $4.27 to $4.30 per share on revenue of around $4.4 billion. Michael Kors shares fell 11.74% to $63.00 in pre-market trading.