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Michael Kors Luxury Brand a Buy, Despite Margin Concerns: StockTwits

NEW YORK (TheStreet) -- The word "luxury" has one translation on Wall Street: high margins. So, investors on did not like hearing luxury brand Michael Kors' (KORS - Get Report) management forecast that gross margin will be "slightly lower" than last year, or that operating expenses will be "moderately higher."

$KORS Nice short if opens @99 ..count the number of times the word "margin" in the call ? ASR (@asr) May. 28 at 08:58 AM

Kors shares fell 4% by 9:35 a.m. before recovering some of those losses to the $95.40 range at 10:30 a.m., off only 0.3% for the day. Sentiment on shares fell 4.6% to 89% bullish, according to StockTwits analytics.

The majority of investors on thought the selloff was an overreaction to what was, in most respects, a blowout quarter. Kors reported earnings per share of 78 cents on $917.5 million in sales. The consensus had called for 68 cents on $816.51 million in revenues, according to the Analyst Ratings Network.

Earnings per share grew 63.5%, compared to the same period last year. Same-store sales grew 26.2%. And total revenue rose 53.6%.

$KORS Buy in this was a incredible beat again... ? Cow (@Cow) May. 28 at 09:34 AM

$KORS this move is a big overreaction ? will hassell (@WillHassellws) May. 28 at 09:37 AM

Full-year guidance, however, disappointed. Management projected fiscal 2015 revenues of between $4 billion and $4.1 billion. The consensus had expected a higher $4.06 billion in sales, according to stats on Yahoo! Finance.

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At the time of publication the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

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