What: Shares of Michael Kors Holdings (NYSE:CPRI) were up about 11% as of noon EDT Thursday after reporting its fiscal-third-quarter financial results earlier in the morning.

So what: After having posted disappointing results last quarter, investors were pleased to see signs of a rebound from Michael Kors. Total revenue rose by 7%, more than doubling the expected growth rate among investors. Net income fell from year-ago levels, but earnings of $0.87 per share nevertheless topped the consensus forecast by a considerable margin. Investors were willing to ignore the luxury retailer's usual conservative guidance and focus instead on some of the more positive accomplishments that Kors has achieved since last quarter's disastrous results.

Kors also sees the coming year as an opportunity to bolster the retailer's potential. It expects to invest in its thriving digital e-commerce business while taking advantage of the greater growth that it has seen in its international markets in Europe and Japan. In addition, with the company having largely focused on women in the past, Kors believes that further development of its men's fashion concept could provide a new audience for the retailer to tap for revenue gains. As CEO John Idol said, "Michael Kors is a powerful brand, and our commitment to delivering compelling fashion product and an exceptional shopping experience will enable us to maintain our leadership position in the global luxury market."

Now what: Despite the share-price gains today, Michael Kors still has a long way to go before it can declare victory over its downturn. The stock is still down by more than half from its all-time highs even after today's gains, and from a fundamental standpoint, comparable-store sales are still extremely weak and worsening, with the latest quarter's 9.5% decline due only partially to currency pressures. Until it can see comps start to pick up ground again, Kors will have to keep proving to shareholders that its turnaround story is real.