NEW YORK (TheStreet) -- Shares of upscale accessory and apparel designer Michael Kors (KORS) are falling after the company reported stronger than expected results, but lowered its full-year comparable sales guidance.
WHAT'S NEW: Michael Kors reported Q2 earnings per share of $1.00, versus analysts' consensus estimate of 89c. The company's revenue also came in above expectations. However, for fiscal 2014 Michael Kors now expects its comparable store sales to rise by mid-teen percentage levels, down from its previous outlook for a high teen percentage gain. The company predicted that its fiscal 2015 revenue would be $4.3B-$4.4B, versus the consensus outlook of $4.36B. Michael Kors provided fiscal 2015 EPS guidance of $4.13-$4.18, versus the consensus outlook of $4.07. The company noted that its guidance assumes that its comparable store sales will increase by mid teen percentage levels in fiscal 2015.
BEARISH TAKE: In a note to investors, Sterne Agee analyst Ike Boruchow wrote that Michael Kors' U.S. comparative sales growth continues to moderate, while weaker U.S. traffic caused the company to reduce its full-year comp guidance. Michael Kors' fundamentals are solid, but slowing growth in the U.S. will keep the stock range bound for the time being, the analyst stated. He kept an $85 price target and Neutral rating on the shares.
Watch the video below for a closer look at Michael Kors' latest quarterly results:
BULLISH TAKE: Taking a much more optimistic view on the stock was Jefferies analyst Randal Konik, who upgraded the shares to Buy from Hold. After Jefferies conducted surveys and channel checks, Konik believes that Michael Kors is still the most compelling name in the handbag/accessories space. The stock has reached an attractive entry point, as the company is still poised to generate significant growth in Europe and North America, according to the analyst, who said the market is undervaluing those growth opportunities. Konik raised his price target on the shares to $100 from $80.
PRICE ACTION: In early afternoon trading, Michael Kors fell 8.3% to $71.51. Two of the company's peers, Coach (COH) and Ralph Lauren (RL) also slid 2% and 1% respectively. Watch maker Fossil (FOSL) , which licenses Michael Kors' brand name for a number of its products, dropped 3% to $99.78.
Reporting by Larry Ramer.