Michael Kors shares plunged over 14% on Wednesday.

The US fashion firm missed analyst quarterly revenue expectations and the group recorded a 2.1% fall in sales and 7% fall in licensing revenue.

In the three months to 29 September, profits fell 37% to $137.6 million compared to the same period in 2017.

Chief executive John Idol said: “The consumer is absolutely responding to the brand.”

“We’ve got to get more inventory into the stores to be able to really build consumer demand,” he added.

Revenue was boosted by last year’s takeover of Jimmy Choo. Revenue increased 9% to $1.3 billion.

Kors’ recently announced plans to buy Versace and the group is “setting the stage for accelerated revenue and earnings growth”. The move will increase the company’s European presence.

Shares in Michael Kors (NYSE: KORS) are trading -14.62% (1746GMT).