Inside the Michael Kors store at Rockefeller Center.

Despite a second-quarter retail sales decline in Europe for the Michael Kors brand, Michael Kors Holdings Ltd. still raised full-year adjusted earnings per share guidance.

For the quarter ended Sept. 29, the company’s results were mixed, by Wall Street’s standards. It bested Wall Street’s consensus estimate for adjusted EPS by 17 cents, but had a rare miss on revenue expectations even though overall revenues actually rose 9.3 percent.

Net income fell 32.3 percent to $137.6 million, or 91 cents a diluted share, from $202.9 million, or $1.32, a year ago. On an adjusted basis, EPS for the quarter was $1.27. Total revenues rose 9.3 percent to $1.25 billion from $1.15 billion, with Jimmy Choo contributing $116.7 million in the period. Wall Street was expecting adjusted EPS of $1.10 on revenues of $1.26 billion.

For the overall quarter, the company said wholesale revenues were better than expected, reflecting some strength in the Americas, and gross margins were slightly higher for the period at 60.9 percent from 60.2 percent a year ago.

By segment, Michael Kors retail revenue was flat at $643.9 million, while comparable-store sales fell 2.1 percent. Retail sales in the Americas rose 2.4 percent to $394.9 million, and were up 4.3 percent to $109.8 million in Asia. Europe sales were down 9.7 percent to $139.2 million. Revenues at Jimmy Choo were $116.7 million. The company didn’t provide year-ago figures due to the timing of when it completed the acquisition of the brand.

The company raised adjusted full-year EPS guidance to $4.95 to $5.05, up from prior guidance of $4.90 to $5.00.

John D. Idol, chairman and chief executive officer, said, “As we enter the second half of fiscal 2019, we look forward to welcoming Versace into our group. With the acquisition of Versace, we have built one of the world’s leading fashion luxury groups in just one year, setting the stage for accelerated revenue and earnings growth.”

The company said in September that it would acquire the Italian fashion house for $2.2 billion, and on the close of the deal would then rename the group Capri Holding. Kors acquired Jimmy Choo last year for $1.2 billion.

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