Michael Kors' shares plunged by 15% today after the luxury fashion group missed Wall Street’s revenue estimates for the first time in almost two years.

The owner of brands such as Jimmy Choo who announced a £1.5 billion deal to takeover Versace earlier this year saw revenue come in flat year on year at £489.6 million as European store sales dropped 10% in the three months to the end of September, leaving it below analyst expectations of £503 million, according to Refinitiv data.

Total revenue across the group climbed 9.3% to £0.95 billion, but missed market expectations of £0.96 billion, while net income shrank by a third to £104.9 million from £154.6 million last year.

“With the acquisition of Versace we have built one of the world's leading fashion luxury groups in just one year, setting the stage for accelerated revenue and earnings growth," Chairman John Idol said.

"This is a truly remarkable and historic moment for our company and we look forward to completing this transformational acquisition in the coming months."