U.S. Markets closed

Shares of Michael Kors fall

NEW YORK (AP) -- Shares of Michael Kors Holdings Ltd. fell Monday, after the fashion firm said Friday in a government filing that a group of its shareholders hopes to sell more than 25 million shares to the public market. The company went public in mid-December.

In the filing with the Securities and Exchange Commission, Michael Kors said a group of its shareholders has a proposal with the lead underwriters of the IPO —Morgan Stanley & Co., J.P. Morgan Securities and Goldman Sachs & Co.

The proposal is to sell 25 million shares, with an option to sell another 3.7 5 million shares if there's demand.

Shares of Michael Kors fell $1.85, or 3.7 percent, by mid-afternoon to $47.74.

The company, which designs and sells high-end accessories and clothes, offered an upbeat earnings and sales outlook in mid-February as it reported strong fiscal third-quarter results. That signaled the company is confident its shoppers' appetites will remain robust.

The Hong Kong-based company reported net income of $39 million, or 20 cents per share, for the three months that ended Dec. 31. That was up from $27.8 million, or 16 cents per share, a year earlier.

Its total third-quarter revenue rose 68 percent to $373.6 million, while its revenue at stores open at least a year rose a robust 38 percent from a year earlier.

The company opened 28 new stores during the quarter. As of Dec. 31, it had 231, including concessions, compared with 156 a year earlier.

Michael Kors sells its handbags, shoes and clothes at its own shops and through other retailers. One of its crocodile handbags can run more than $2,000 and a halter dress more than $7,000, but the bulk of its business is centered on somewhat more affordable luxuries such as $300 sunglasses and $600 purses.

The company's shares have almost doubled since closing at $24.20 on the first day of trading on Dec. 15.