Michael Kors Sells A Few More Handbags In Q1

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Michael Kors Holdings Inc KORS shares were trading higher by $4.26 (11.5 percent) at $43.75 in Thursday's session. The higher-end fashion designer is rallying off a better-than-expected Q1 report for EPS and sales; Q1 comps were up 9 percent.

The Street seems unfazed by the lowered guidance for FY 2016 EPS.

After a sharply higher open ($42.38 vs. Wednesday's close of $39.49), it retreated to $41.70 before resuming its rally. So far, it has reached $44.59 and fallen back under $44. The current high matches the issues high from June 29.

Since February 2014, Michael Kors has been more than cut in half from its all-time high ($101.14) to its three-year low made on Tuesday at $38.16. The issue staged a $2 rally on July 30 (from $40.11 to $42.12) when rumors circulated the company was attempting line up a $12 billion credit line in order to take the company private in the $60-$62 range. When the rumors were not confirmed, the issue went right back down and made a new low for move.

Today's price action is taking place on much higher than average volume. So far, 9.24 million shares have traded compared to its 20-day average of 4.4 million with less than three hours remaining in the session.