Michael Kors Holdings Ltd (NYSE:KORS) is on a roll and is turning into one of the hottest fashion retailers worldwide. The firm reported fiscal first-quarter profit and sales were up strongly as the luxury retailer saw solid growth in its retail, wholesale and licensing segments.

Michael Kors shares are down around 3% in premarket trading Monday.

Michael Kors Holdings

Details on first quarter Michael Kors earnings

The company increased earnings guidance, and Michael Kors Holdings Ltd (NYSE:KORS) now expects EPS of $4 to $4.05 for the fiscal year on revenues of $4.25 billion to $4.35 billion. The firm had earlier guided $3.85 to $3.91 a share and revenues of $4 billion to $4.1 billion

In fiscal Q2, the increasingly popular handbag maker and retailer said it an EPS of 85 cents to 87 cents on revenue of $950 million to $960 million. The current consensus analyst estimate is 89 cents and $959.5 million in revenue. The company is also same-store sales growth to approach 20%.

For the first quarter (ending June 28), Kors brought in earnings of $187.7 million, or 91 cents a share. That figure was up notably from $125 million, or 61 cents a share, year over year.

Moreover, net sales leaped 44% to $887 million, while total revenue (including licensing revenue) surged an impressive 43% to $919.2 million.

Back in May, Michael Kors Holdings Ltd (NYSE:KORS) forecast earnings of 78 to 80 cents per share, on revenue of $840 million to $850 million.

Additionally, retail net sales were up 47% to $480.2 million, reflecting a 24% increase in same-store sales and 115 new store openings since the same period a year ago. The company had earlier projected a 20% increase in same-store sales. Wholesale net sales moved up 40% to $406.8 million.

North America was strong, but Europe was gangbusters. North American revenue increased by 30% to $718.9 million, with same-store sales up 19%. European revenues more than doubled to $185.5 million and same-store sales were up by more than 54%.

Good report allays analyst concerns of overexpansion

Michael Kors Holdings Ltd (NYSE:KORS) has seen demand in its retail and wholesale merchandise grow strongly over the last few quarters, but the firm has recently had to deal with criticism that the brand has expanded too far and too fast.

Some industry insiders have commented that the brand coul risk overexposure. Furthermore, worries about discounting were an issue for Kors earlier this summer after analysts from both Barclays and Citigroup  published reports noting the firm had dramatically increased the square footage in its stores earmarked for discounted goods compared to a year earlier.