This story has been updated from 12:24 pm EST to reflect stock price changes.
NEW YORK (TheStreet) - Shares of Michael Kors (KORS) reversed course on Wednesday to move higher, after a rocky morning in the red, despite the accessories and lifestyle retailer reporting fourth-quarter earnings and revenue that were above Wall Street's expectations.
The stock went from surging more than 4% before the markets opened to falling as much as 4.1% in morning trading. At last check, Michael Kors shares were rising 1.1% to $96.80 on Wednesday on volume that was more than quadruple the average daily trading volume of 2.3 million shares.
Hong Kong-based Michael Kors reported fourth quarter net income of $161 million, or 78 cents a share, compared to $101.1 million, or 50 cents a share, in the year-earlier quarter. Analysts, on average, were expecting the company to post quarterly earnings of 68 cents a share, according to Thomson Reuters.
Michael Kors' revenue rose 53.6% to $917.5 million, above expectations of $816 million. The company said that retail net sales increased 49.7% to $408.4 million, with comparable store sales up 26.2% in the quarter. Analysts were calling for same-store sales of 21.4%, according to Consensus Metrix.
Gross profit, as a percentage of total revenue, increased to 59.9% compared to 59.7% in the fourth quarter of fiscal 2013, the company said.
"We believe that our expanding global brand awareness is driving continued strong demand for our luxury product and fueling our growth as a global luxury lifestyle brand. In addition, Michael Kors and our talented design team continue to deliver exceptional products while the distinctive jet-set in-store experience that we offer in both our retail stores and our shop-in-shops continues to resonate well with our consumers," John D. Idol, the company's chairman and CEO said in an earnings statement. "Overall, we have great momentum as we head into fiscal 2015 and remain very excited about our growth prospects for next year and beyond."
As of the end of the quarter, the company operated 405 retail stores, including concessions. Including licensed locations, there were 555 Michael Kors stores worldwide at the end of the fourth quarter of fiscal 2014.
However, despite the strong growth momentum Michael Kors is seeing particularly in Europe and Japan, analysts during the conference call became concerned about the company's margins going forward, particularly as it continues to invest in the brand.