Michael Kors Holdings Ltd. (KORS – Free Report) maintained its positive earnings surprise streak for the 11th consecutive quarter, with third-quarter fiscal 2018 results. Revenues were ahead of the estimate for the fourth straight quarter. The results were driven by robust performance by the Michael Kors and Jimmy Choo brands.

Following the better-than-expected results, the company raised the fiscal 2018 guidance. Buoyed by this, the stock rallied more than 8% during pre-market trading session. In fact, its shares have gained 21.3% in the past three months, outperforming the industry’s 15.6%.

The luxury lifestyle retailer delivered quarterly earnings of $1.77 a share that surpassed the Zacks Consensus Estimate of $1.29 and rose 7.9% from the year-ago quarter. Total revenues of $1,440.1 million outpaced the Zacks Consensus Estimate of $1,375 million and improved 6.5% year over year. On a constant currency basis, total revenues were up 4.6%.

Adjusted gross profit jumped 9.9% to $885.6 million. Meanwhile, adjusted gross margin came in at 61.5%, up 190 basis points (bps) year over year. Foreign currency translation drove gross margin by nearly 10 bps. Adjusted operating income inched up 1% to $345.7 million and operating margin expanded 130 bps to 24%.

Segment Performance

Retail net sales came in at $846.3 million, up 1.1% year over year. The upside was mainly driven by 32 stores openings since the end of third-quarter fiscal 2017. It was also aided by better-than-expected performance in Europe and Americas. However, comparable sales declined 3.2%. On a constant-currency basis, retail net sales dropped 1% and comparable sales fell 5.2%.

Wholesale net sales were down 8.9% to $430.8 million, while on a constant currency basis, it declined 10.5%. Licensing revenues jumped 12.3% to $48.3 million.

Regional Performance

Total revenues in the Americas declined 5.9% to $925.5 million. European revenues jumped 11.3% to $168 million and revenues from Asia rose 17.3% to $131.7 million.