What happened Shares of Michael Kors Holdings Ltd (NYSE: KORS) were looking attractive today after the fashion house posted better results than expected in its second-quarter earnings report and raised its outlook following the closing of its Jimmy Choo acquisition last week. As of 11:25 a.m. EST, the stock was up 13.7%. Image source: Michael Kors. So what The luxury fashion brand said total revenue increased 5.4% in the quarter to $1.15 billion, which easily beat estimates at $1.04 billion. Overall retail sales were up 8% due to new store openings and an increase in e-commerce in Europe and Asia. Comparable sales declined 1.8%, but that was an improvement from a 5.9% drop in in the first quarter. Adjusted earnings per share (EPS) increased 37% to $1.33 as gross margin jumped 100 basis points and the company recorded a foreign currency gain of $40.5 million. That result crushed estimates at $0.83, though much of that gap was due to the one-time foreign currency gain. CEO John Idol called it "a transformative time" for the company as it completed its acquisition of Jimmy Choo. He added, "We believe that bringing together these two iconic brands further strengthens our growth opportunities, increases our product and geographic diversification, and importantly, creates a platform for future acquisitions." Now what Following the takeover of Jimmy Choo, the company bumped up its full-year revenue outlook to $4.59 billion, up 2% from the prior year, though that includes $215 million to $225 million in incremental sales from Jimmy Choo. That compares to the analyst consensus of $4.3 billion. Michael Kors maintained its guidance of comparable sales down in the mid-single digits and operating margin of 16%. However, it raised EPS guidance from $3.62-$3.72 to $3.85-$3.95, which includes a $0.08 dilution from the Jimmy Choo deal. Management also said it sees an opportunity to grow Jimmy Choo revenue to $1 billion a year. Michael Kors appears to be stronger with Jimmy Choo now under its umbrella, but with comparable sales still expected to decline, the company faces considerable headwinds ahead. The hoped-for turnaround is far from complete. 10 stocks we like better than Michael Kors HoldingsWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Michael Kors Holdings wasn't one of them! That's right -- they think these 10 stocks are even better buys. Click here to learn about these picks! *Stock Advisor returns as of October 9, 2017Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool owns shares of Michael Kors Holdings. The Motley Fool has a disclosure policy.