Shares of Michael Kors Holdings Inc. registered small gains in Thursday morning trading after Wednesday’s sell-off that wiped out nearly 25 percent of its market capitalization.
Investors sent Kors shares swooning 24.2 percent to $45.93 Wednesday after the company reported a decline in North American comparable-store sales in the fourth quarter and offered lackluster projections for the current first quarter and full year.
In the first 90 minutes of New York Stock Exchange trading Thursday, shares rose 1.1 percent to 46.39 as disappointment translated into a buying opportunity.
Competitors in the handbag space also shared in the losses Wednesday, with Coach Inc. falling 3.3 percent to $35.36 and Kate Spade & Co. dropping 4.7 percent to $25.39. Fossil Group Inc., Kors’ watch licensee, dropped 6.5 percent to $70.77.
On Wednesday morning, Coach shares dropped 0.1 percent to $35.30, while Kate Spade & Co. registered a 0.1 percent gain to $25.42.
Fossil shares, however, grew 1.4 percent to $71.61.