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