NEW YORK ( TheStreet) -- Michael Kors ( KORS) and Fossil ( FOSL) each surged in early trading after both specialty retailers posted quarterly earnings that blew past Wall Street estimates. The Hong Kong-based Michael Kors said Tuesday that profit for its fiscal first quarter rose 82% over last year to $125 million, or 61 cents a share. Revenue jumped by 54.5% to $640.9 million over the same period a year earlier. Analysts, according to Yahoo! Finance, expected the company to earn 49 cents a share on revenue of $570.5 million. Shares surged 4.6% to $70.99 as the markets opened. The company's fiscal first quarter ended on June 29. Michael Kors is firing on all cylinders, which includes retail stores, wholesale and licensing agreements. At quarter's end, the company operated 328 retail stores, including concessions as well as 114 additional retail stores, operated through licensing partners. "Our exceptional first quarter financial results demonstrate the sustained strong demand for the Michael Kors luxury brand," Chairman and CEO John D. Idol said. "We attribute the ongoing momentum to our fashion design leadership combined with an aspirational jet-set luxury in-store experience. As we continue to successfully execute on our strategic initiatives, we remain excited about our future growth potential." In North America comparable store sales jumped 25%, "as our luxury accessories and ready-to-wear offering and jet-set in-store experience continue to resonate strongly with consumers," Idol said. "Sales in our North America wholesale segment increased 50%, driven by comparable store sales growth as well as the continued successful conversion of shop-in-shops in department stores." Across the Atlantic, European sales surged 144% in the first quarter, as growing brand awareness led to comparable store sales growth of 56%, the company said. Finally, revenue from its licensing segment increased 41%, driven primarily by the strength in watches and eyewear, it said. Michael Kors' gross profit rose 58% to $397 million -- 62% of total revenue, it said. The company said it expects total revenue for the second quarter to be in the range of $695 million to $705 million and comparable store sales growth of 15% to 20%. Second-quarter EPS are expected to be between 62 cents a share and 64 cents a share.
For fiscal 2014, the company now expects total revenue in the range of $2.8 billion to $2.9 billion and comparable store sales growth of approximately 20%. Full year EPS are expected to be between $2.67 and $2.69 a share. Michael Kors "delivered better revenues, higher than expected gross margins and attractive inventory control," Citigroup analyst Oliver Chen wrote in a research note to clients on Tuesday. The analyst has a buy rating on Kors. The stock is also among Citi's top stock picks. "KORS print is high quality and exhibits industry leading growth," the note says, "however if someone wanted to be picky," the company is forecasting slightly lower comparable store growth for the current quarter versus its first quarter, which Chen believes is conservative. Fossil shares surged more than 15.4% to $124.02 after the company reported record earnings results. The consumer fashion accessories company, which sells watches, handbags and jewelry, reported second-quarter net income of $67.7 million, or $1.15 per diluted share. That compares to net income of $57.3 million, or 92 cents a share, in the year-earlier quarter. Fossil's net sales rose 11% to $706 million, it said. Wall Street expected the company to post earnings of 91 cents per share on $691 million of revenue, according to Yahoo! Finance. The company raised its full-year guidance to between $6.15 a share and $6.35 a share. The strong earnings comes after the stock got a downgrade to underweight, the equivalent of a sell rating, from equal weight, by Barclays on Monday. Separately, American Eagle Outfitters ( AEO) cuts its second quarter earnings guidance late Monday to 10 cents a share from a range of 19 cents to 21 cents a share, previously. American Eagle reports on Aug. 21, 2013. Shares plummeted more than 16% to $16.73 at Tuesday's open. -- Written by Laurie Kulikowski in New York. Follow @LKulikowski To contact Laurie Kulikowski, send an email to: Laurie.Kulikowski@thestreet.com. >To submit a news tip, email: firstname.lastname@example.org. Follow TheStreet on Twitter and become a fan on Facebook.