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Michael Kors isn't doing as great as it seems

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Michael Kors a>oindex>reported better than expected revenue, sending the shares soaring Thursday.

But investors buying the stock today may be overlooking some lingering problems. Despite being the coolest brand on the market when it went public in 2011, Michael Kors is now plagued by criticism that it grew too fast.

The sales growth reported today comes from new store openings, but sales at stores open at least a year — a key metric for retailers — declined 9.5% in the most recent quarter. That marks six quarters of deceleration.

Even after gains today, the brand's shares have fallen 38% in the past six months.

Despite the risk of overexpansion, Michael Kors is continuing to build new boutiques and outlet stores. The outlet stores, which sell Michael Kors bags...