NEW YORK (TheStreet) -- Michael Kors
(KORS - Get Report) shares shot up 18.7% to $90.98 on Tuesday after the luxury accessories and handbag maker showed the world that consumers were certainly buying its merchandise over the holiday period.
The Hong Kong-based company said that revenue surged 59% to $1 billion in the December-ended quarter (its third fiscal quarter) from $636.8 million in the year-earlier quarter. Comparable-store sales jumped 27.8% in the quarter.
Michael Kors' reported net income rose 76% to $229.6 million, or $1.11 a share, from a year earlier.
Analysts, according to Thomson Reuters, expected the company to post revenue of $859.9 million and earnings of 86 cents a share.
WATCH: Michael Kors Proves It is the Must-Have Handbag for the Holidays
The luxury lifestyle company's results are in stark contrast to struggling Coach
(COH - Get Report)
, which last month reported quarterly profit and sales down 15% and 5%, respectively, as the company executes on a turnaround to better compete with Michael Kors.
"Michael Kors took Coach by the throat and squeezed all the life out of it during the holiday season," Brian Sozzi, CEO and chief equity strategist of Belus Capital Advisors
and a RealMoney
contributor, wrote in an email. "This one single company is responsible for Coach waking up to this realization: it must reinvent itself, quickly. At the core of Michael Kors' throat squeeze: bright product, better made product, better store windows, snazzier looking associates that drive excitement for a non-discretionary purchase."
Sozzi has a "buy" rating on Kors.
Michael Kors' results are also a refreshing contrast to the disappointing holiday sales results from many retailers, specialty and department combined.
Michael Kors shares hit a new intraday 52-week-high of $93.02 on Tuesday.
Michael Kors had "amazing momentum in a holiday quarter when many retailers and luxury brands saw weak sales" such as soft results from Moet Hennessey Louis Vuitton
and comp declines from Coach, said retail expert Marie Driscoll of Driscoll Advisors.
There really was "no bad news in this earnings report and [KORS is] making infrastructure investments to support continued global growth, Driscoll wrotes in an email, though she is cautious on merchandise markdowns in Michael Kors' domestic retail stores and in the department stores. "The European opportunity is significant with global tourists and Europeans alike."
That said, Driscoll recommended investors wait for a pullback from Tuesday's stock surge before buying shares. "I would let the shares digest these gains and wait for a lower entry point," she said. Driscoll has a "buy" rating on Coach based on confidence of a longe- term turnaround and a "neutral" rating on LVMH.
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