Kate Spade outperforms Michael Kors

Michael Kors continues to defy gravity.

Despite reporting declining same-store sale🍌s and profit margins in its most recent quarter, shares in the luxury accessories maker have risen 11 percent over the last two days — adding $750 million in value.

Michael Kors stock, which had gotten battered this year — falling 42 percent — as same-store ꧃sales in its 𝔍own stores and at department stores have decreased, did manage to grow gross profits in the three months ended Sept. 26, but that effort seems to have come from cutting costs.

Perhaps investors were also swayed because same-store sales, while down, were still better than la🔯st year.

“I think, overall, when I look at the name, I thin𒆙k yes, you had a sequentially improved comp, earnings came in better than expected, but look under the hood,” retail ana🎐lyst Dana Telsey told CNBC.

“The reason why the numbers are better than expected: You had lower SG&A, lower tax rate, yo🅺u had a share repurchase,” said Telsey, the CEO of her own Telsey Advisory Group.

Indeed, same-store sales slipped 8.5 percent in its most recent quarter𒅌 while operating profit mar♚gins shrank to 24.2 percent from 28.9 percent a year ago.

Overall, revenue in the quarter grew 7.1 percent to $2.12☂ billion.

In Thursday morning trading, 𒅌Kors shares were at $43.42, up 2 percent on the day and ahead 10.4 percent since Nov. 3. the company reported results before the market opened on Nov. 4.

The story is quite different at Kors rival Kate Spade — which reported on Thursday that its same-store🌠 sales grew in the quarter and its margins held up d꧃espite price-cutting at other companies.

Kate Spade reported same-store sales grew 16 percent in the three months ended Oct. 3. Gross profits slipped a bit to 61.2 percent from 62.8 percent a year earlier. Its revenue in the period increased 2💯6 percent, to $⛦277.3 million.

Its shares spiked 🌺8.9 percent in Thursday morning trading, toꦿ $21.51.

Telsey is bullish on Kate Spade.

“I think the difference between [Kate Spade] and Ko♐rs, [Kate Spade is] a smaller business, it’s off a smaller base, it has a more extensive product offering,” Telsey said in the TV talk. “It doesn’t have as much exposure to the department stores as what both Coach and Kors have, and their comps are running positive because it is such a smaller base.”