Michael Kors Holdings Ltd. (KORS – Analyst Report) has maintained its earnings streak for the fourth consecutive quarter. The luxury lifestyle retailer’s fourth-quarter of fiscal 2016 earnings per share of 98 cents increased 8.9% year over year and also surpassed the Zacks Consensus Estimate of 96 cents. Further, total revenue of 1,198.7 million came in above the Zacks Consensus Estimate of $1,150 million and also climbed 10.9% year over year. Following the stellar results, the company shares rallied over 7.9% in pre-market trading session.

The upside in the top line was primarily driven by an increase in retail net sales in the Americas, Europe and Asia. However, the earnings growth in the quarter was limited by a 2 cent impact from forex volatility.

Further, gross margin fell 20 basis points (bps) to 58.2% with forex headwinds resulting in a 100 bps decline. Operating margin deteriorated 330 bps year over year to 20.4% owing to a rise in operating expenses.

Separately, the company announced that it has completed the buyout of Michael Kors (HK) Limited, the exclusive licensee in China and certain other jurisdictions in Asia, for $500 million in cash.

Segment Performance

The Retail segment generated net sales of $572.6 million, up 22% year over year. The upside was mainly driven by 142 new stores openings over the past twelve months and higher e-commerce sales. Operating profit fell 6.2% to approximately $67.7 million. Comparable store sales declined 0.3% (up 1.5% on a constant currency basis).

At the Wholesale segment, revenues inched up 3.5% to $590.5 million, while operating profit increased 3.3% to $160.7 million.

Licensing segment revenues declined 13.6% to $35.6 million. Operating profit decreased 12.3% to $15.7 million.

Regional Performance

Revenues in the Americas grew 4.6% year over year to $879.1 million, while revenues in Europe rose 15.6% from the year-ago quarter to $254.1 million. Lastly, revenues in Asia soared 216.4% year over year to $65.5 million.