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Michael Kors Holdings Ltd said higher spending on marketing its upscale footwear brand Jimmy Choo will weigh on earnings this year, driving shares of the luxury handbag maker down 12 percent on Wednesday.

Kors has already signed new supermodels for Jimmy Choo marketing campaigns, and on Wednesday it unveiled plans to open some 30 new Jimmy Choo stores in fiscal year 2019, doubling down on its $1.2 billion purchase last year of the footwear brand famous for its stilettos.

Kors expects earnings per share of $4.65 and $4.75 for fiscal year 2019, reflecting what it said was a 5- to 10-cent hit from investments in Jimmy Choo. Analysts on average were expecting earnings of $4.74 per share, according to Thomson Reuters I/B/E/S.

“We expect Jimmy Choo operating income to be above the full year average in the first and third quarters, while we do not expect the business to generate significant operating income in the second and fourth fiscal quarters,” Michael Kors Chief Financial Officer Thomas Edwards said on a conference call with analysts.

The earnings forecast, which was lower than the consensus expectation at its midpoint, took the shine off Kors’ stronger-than-expected quarterly results which were powered by higher demand for luxury handbags.

Kors’ earnings forecast was “uninspiring,” given the strengthening handbag market, stable prices at department stores and higher foreign tourism to the United States, RBC Capital Markets analyst Brian Tunick said.

Kors’ shares, which have risen nearly 90 percent over the past 12 months, plunged 11.7 percent to $60.34 on Wednesday morning and were on track for their worst one-day dip in three years.

Still, Kors reported a rise in same-store sales for the first time in eight quarters, surprising analysts who had expected sales to decline.

The company said sales were boosted by new spring accessories and selling more products at full price rather than on discount.

Kors also said it would explore more acquisitions to boost its luxury products.

Net income attributable to Kors was $44.1 million or 29 cents per share in the fourth quarter ended March 31, compared with a net loss of $26.8 million or 17 cents per share a year earlier.

Revenue rose to $1.18 billion from $1.06 billion, exceeding analysts’ average estimate of $1.15 billion, according to Thomson Reuters I/B/E/S.

Excluding one-time items, the company earned 63 cents per share, topping analysts’ estimates of 60 cents.

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