Vince (NYSE:VNCE), the increasingly popular designer and retailer of luxury apparel and accessories, has just released its first-quarter earnings to kick off fiscal 2014 and its stock has reacted by making a sharp move higher. Let's break down the company's results and outlook on the rest of the year and then check in on one of its largest competitors, Michael Kors (NYSE:CPRI), to determine if we should be buying into this rally right now or if the good news is already priced in.

Source: Vince's Facebook

Beating down the estimates
Vince released its first-quarter report before the market opened on June 5 and the results exceeded analysts' expectations on both the top and bottom lines; here's a breakdown:

Earnings Per Share $0.04        Nil
Revenue $53.45 million $48.77 million

Source: Benzinga

Vince's revenue increased 32.4% and earnings per share increased $0.04 from the $0.00 earned in the first quarter of fiscal 2013; these results were driven by comparable-store sales rising 11.1% and "continued strong momentum" in its e-commerce business, which can be attributed to the website's relaunch in February. 

Source: Vince's Facebook

Gross profit increased 50.8% to $26.4 million and operating profit increased 174% to $5.2 million, both of which were powered by costs of goods sold rising just 18.3% during the quarter; in relation, the margins showed great strength, with the gross margin expanding 600 basis points to 49.4% and the operating margin expanding 500 basis points to 9.7%.

Lastly, Vince opened two new full-price retail stores during the quarter, bringing its total store count to 30 and putting it on pace to achieve its expansion goals for the year. It is also worth noting that of these 30 locations, 24 are full-price retail stores and six are outlet stores.

Overall, it was a fantastic quarter for Vince and it got even better when the company went on to provide updated guidance for the full year...

Source: Vince's Facebook

What will the remainder of the year hold?
As a result of the stronger-than-expected first quarter, Vince announced that it was raising its full-year earnings per share outlook for fiscal 2014; the company now expects earnings per share in the range of $0.88-$0.92, representing growth of 20.5%-26% from fiscal 2013, and this is up from its previous estimated range of $0.85-$0.90. In addition, the company now expects to open seven to eight new stores during the year versus previous expectations of six to eight new stores.

Vince then went on to reiterate its expectations for revenue in the range of $325 million-$340 million, growth of 12.8%-18% from fiscal 2013, comparable-store sales growth in the high single-digit to low double-digit percentage range, and gross margin expansion of 150-250 basis points.

All in all, it was a phenomenal quarter for Vince and its stock reacted accordingly by spiking more than 19% higher on the day of the release; this is a substantial one-day pop and I believe it more than prices in the earnings beat and raised outlook, so I would urge investors to wait for the stock to come back down a few points before pursuing new investments. 

A competitor that continues to impress -- Michael Kors
Michael Kors, arguably the most loved designer and retailer of handbags and accessories in the world and one of Vince's largest competitors in the luxury apparel and accessories market, reported earnings results of its own just a short while back and it too exceeded analysts' expectations; here's an overview of the fourth-quarter report released on May 28:

Earnings Per Share $0.78 $0.68
Revenue $917.45 million $816.67 million

Source: Estimize

Michael Kors' earnings per share increased 56% and revenue increased 53.6% from the same period a year ago, driven by double-digit revenue growth in all of the company's regions and segments. Comparable-store sales increased 26.2%, including incredible 62.7% growth in Europe and 20.6% growth in North America.

Source: Michael Kors' Instagram

Gross profit increased 54.2% to $549.4 million and operating profit increased 58.3% to $245.9 million, as the gross margin expanded 20 basis points to 59.9% and the operating margin expanded 80 basis points 26.8%.

In terms of expansion, 22 new stores were opened during the fourth quarter, bringing Michael Kors' total store count to 555 worldwide; of these 555 stores, 405 are company-owned and 150 are licensed.

Michael Kors then went on to provide its full-year outlook on fiscal 2015, calling for earnings-per-share growth of 19.6%-21.4%, revenue growth of 20.8%-23.9%, and comparable-store sales growth in the high-teens percentage range compared to fiscal 2014; if this forecast is accurate, it would result in another record-setting year for the company. 

In summary, it was an outstanding quarter for Michael Kors and its stock responded by rising 1.33% in the next trading session; however, the shares have come down nearly 4% since, and I believe this represents a picturesque opportunity to initiate a position in one of the best growth stocks in the market today.

The Foolish bottom line
Vince announced great first-quarter results and its updated outlook on fiscal 2014 calls for considerable growth going forward. The company's stock reacted by jumping approximately 19.5% higher on the day of the release, but unfortunately, I do not believe there is much more room to the upside from here. Foolish investors should wait for Vince's stock to come down a few percentage points before considering investments and instead look to Michael Kors for an opportunity today.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.