Richard Drew, Associated Press
Fashion designer Michael Kors, center, applauds with Silas K. F. Chou, left, and Lawrence S. Stroll, third left, as the IPO of Michael Kors Holdings Ltd, begins trading on the floor of the New York Stock Exchange, Thursday, Dec. 15, 2011. The designer's company raised $944 million after selling 47.2 million shares in its initial public stock offering Wednesday night, valuing the company at $3.8 billion.

PORTLAND, Ore. — Michael Kors understands what fashion-conscious shoppers desire. Apparently, he knows what investors want, too.

The designer's company, Michael Kors Holdings Ltd., raised $944 million after selling 47.2 million shares in its initial public stock offering Wednesday night, valuing the company at $3.8 billion. It had planned to sell about 42 million shares for between $17 and $19. But like demand for some of Kors' designs, investors clamored for more and that helped push the price to $20 per share.

The shares spiked 22 percent in early trading on the New York Stock Exchange to $24.47.

The success of the Michael Kors IPO is a testament to the resilience of the well-heeled set which has continued spending through tough economic times, and the company's strategy of producing a diverse array of items, so that it's not overly focused on individual product categories in case one of them falls out of fashion. More broadly, the IPO defies what has been an otherwise weak year for companies looking to raise money through new offerings of stock. For Kors personally, it means a payday of more than $100 million.

"The IPO market has not shown grandiose returns, but this was on everyone's buy list," said Scott Sweet, a senior managing partner at

The stock is set to begin trading on the New York Stock Exchange on Thursday.

Kors, an American designer who became a household name in recent years as a judge on "Project Runway," has been one of the top names in fashion for years, dressing countless celebrities and even First Lady Michelle Obama. His clothing and accessories, for men and women, are more practical luxury than haute couture. The focus is traditional American style with just a hint of high-fashion glitz.

The company, based in Hong Kong, makes high-end handbags, shoes and clothing that it sells at its own shops and through other retailers. A Michael Kors crocodile handbag can run more than $2,000 and a halter dress more than $7,000, but the bulk of its business is centered on more affordable luxuries for wealthy shoppers such as $300 sunglasses and $600 purses.

While most consumers are feeling the drag of the economy, wealthy shoppers in the U.S. and abroad are spending more freely. That has helped companies such as jewelry seller Tiffany & Co., handbag maker Coach Inc. and luxury retailer Nordstrom Inc. recover from the recession faster than the rest of the industry. In 2011, U.S. retail sales of luxury items is up more than 5 percent from a mid-recession low in September of 2009, according to an estimate by Mastercard SpendingPulse.

Michael Kors has been one of the beneficiaries of that spending. The company's net income soared 85 percent to $56.9 million in the 2011 fiscal year and its revenue increased 58 percent to $803.3 million in 2011. Revenue from its stores open at least a year, considered a key indicator of a retailer's performance, jumped 31 percent during the first two months of its third quarter, which ended Nov. 26.

The company's strong performance is helping to fuel rapid expansion. The company added 30 stores in its 2010 fiscal year and plans to open 40 more in fiscal 2011. It currently operates 184 stores in North America and 37 internationally. Its growth potential makes it stand out in a less-than-stellar year for the IPO market. In 2011, the total number of IPOs filed rose nearly 5 percent from 2010, but the number that actually made it to market fell 20 percent, according to Renaissance Capital, as many companies either withdrew or postponed their offerings because of the skittish financial markets. Adding to the malaise, total proceeds raised through IPOs have fallen 11 percent.

"You have to separate the overall market environment from a company like Michael Kors that is in a very strong growth period," said Linda Killian, principal at Renaissance Capital, an IPO-focused investment firm. "Investors want to own a company like this, irrespective of what is going on in the market."

Prada and Salvatore Ferragamo, two other luxury brands, went public this year with limited success. Prada had a lackluster debut in June on the Hong Kong exchange and its shares have fallen 8 percent since. Ferragamo's stock jumped on its first day in trading in Milan, but it has climbed only 9 percent from its closing price on its first day.

Analysts say Michael Kors could fare better because it is a younger company, has a more recognized name and it targets a broader swath of shoppers. It has gone public in its growth phase, while Prada and Ferragamo made their debut much later in their development.

But there is some risk. Some analysts worry the potential growth of the luxury market is overblown and that wealthier shoppers could retreat if more economic tumult hits.

"Luxury has been strong," said Morningstar retail analyst Paul Swinand. "But I worry that we are at the peak."

Michael Kors shares will trade under the ticker symbol KORS. Morgan Stanley, JPMorgan Chase and Goldman Sachs were the lead underwriters on the offering.