(REUTERS) - Michael Kors Holdings Ltd. reported higher quarterly results, helped by strong demand for its namesake luxury brand, sending shares of the designer apparel and accessory company up 23 percent.
The company, named after its founder Michael Kors who is one of the judges on the long-running TV fashion show Project Runway, also said it expects a fourth-quarter profit of 10 cents to 12 cents a share.
Analysts were looking for 11 cents a share, according to Thomson Reuters I/B/E/S.
Michael Kors, which sells fashion accessories, footwear and apparel, reported a third-quarter profit of $39 million, or 20 cents a share, compared with $27.8 million, or 16 cents a share, a year ago.
Revenue rose 68 percent to $373.6 million.
The company, which competes with companies such as Coach, Burberry, Ralph Lauren and Hermes International, said third-quarter comparable sales grew 38 percent, driven by higher sales in the luxury leather accessory business like handbags and small leather goods.
Michael Kors shares were up 20 percent at $40.26 in early trading on Tuesday on the New York Stock Exchange. Earlier in the session, the stock touched $41.30, its highest since it started trading in December.
(Reporting by Meenakshi Iyer in Bangalore; Editing by Maju Samuel)