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Michael Kors' shares soar after the handbag maker's earnings top expectations

Michael Kors' share price surged Tuesday after the designer reported stronger comparable sales in North America and Europe and quarterly profit and revenue that beat expectations.

By late morning, the share price was up nearly 20 percent.

In its earnings report for the fiscal first quarter, Kors said profits fell 15 percent and revenue was down 3.6 percent from a year earlier, but the results far exceeded expectations.

Kors also raised its sales outlook for the full year, showing signs that its turnaround efforts were working.

"We are encouraged by our first quarter performance, although we continue to believe that fiscal 2018 will be a transition year for our company, as we focus on laying the foundation for the future by executing on our strategic plan," CEO John Idol said in a statement.

The luxury fashion designer said its fiscal first quarter net income attributable to the company dropped 15 percent to $125.5 million, or 80 cents per share, from $147.1 million, or 83 cents a share, a year earlier.

The previous fiscal first quarter figure included one-time costs related to the acquisition of a Greater China licensee. Excluding that charge, Kors had earned 90 cents a share.

While its profits fell, the results outpaced expectations: Analysts surveyed by Thomson Reuters on average had predicted Kors would earn 62 cents per share. That...