Shares of Michael Kors jumped 11 percent on Thursday, after the handbag maker reported what one analyst referred to as "better-than-feared" results.
Despite concerns surrounding a slowdown in the overall handbag market—paired with worries that Kors' product is becoming overdistributed—the affordable luxury label on Thursday reported sales and profits that beat analysts' expectations for the first quarter.
Cowen & Co. analyst Oliver Chen said the brand's margins came in better than expected, even as the company increased discounts during the quarter. Management admitted it got "a little more promotional" during the period, as same-store sales slowed more quickly than anticipated.
"We believe Kors shares have found a bottom," Jefferies analyst Randal Konik wrote in a research note.
"Fundamentals are showing signs of stabilization and we see room for further improvement as product initiatives kick in, combined with easier compares. Broadly speaking, this is likely the cheapest you will get this global growth player," he said.