It’s too early for retail analysts to determine what type of holiday season this is going to be for Michael Kors (KORS), which primarily sells higher-priced women’s apparel. The company aggressively matched discounts offered by its rivals over the Black Friday weekend, calling into question the profitability of those sales and for the entire current quarter.

That’s a concern because earlier in the month the company released its previous quarter’s results that included its first ever decline in year-over-year earnings driven by reduced spending on the type of luxury items Michael Kors sells. But recent economic reports show gross domestic product growing by more than a 3% annual rate in the U.S., suggesting consumers should have more money to spend on higher-priced goods than originally assumed.

In the meantime, rumors surrounding a possible acquisition of Michael Kors have died down since the beginning of the month when OptionMonster reported huge call-buying volume at a strike price of $55 expiring a few weeks later. A lot of money was lost on that trade, and no news has emerged since then to suggest a deal is imminent. But we still have six weeks left on this trade, enough time to judge how the company fared through the end of the year, so we’ll stick with it as long as it remains above our stop level.