What happened

Shares of Michael Kors Holdings (NYSE:KORS), a designer, marketer, and distributor of women's and men's apparel and accessories, are down 8% as of 3:50 p.m. EST, despite topping Wall Street estimates a day earlier.

So what

Shares of Michael Kors actually rose initially when the company reported that revenue increased 7% year over year to $1.44 billion, which topped analysts' estimates by about $60 million. It was actually the strongest revenue growth Michael Kors reported over the past seven quarters. The bottom line also cooperated and recorded a strong 8% growth to $1.77 earnings per share, exceeding analysts' estimates by a staggering $0.48 per share.

A purse on a shelf in a luxury consumer goods store.

Image source: Getty Images.

Now what

While some investors are digesting a strong quarterly performance from Michael Kors, others are concerned that earnings are forecast to drop a hefty 25% to 32 due, in part, to expenses from the Jimmy Choo acquisition (a $1.2 billion deal). Take Thursday's stock price decline with a grain of salt, especially as U.S. retail sales are expected to climb modestly higher in 2018, compared to 2017's 3.9% gain, thanks to lower unemployment, gradually increasing wages, and consumer confidence.

Daniel Miller has no position in any of the stocks mentioned. The Motley Fool owns shares of Michael Kors Holdings. The Motley Fool has a disclosure policy.