Urban Outfitters 2Q profit tops expectationsThe Associated Press
PHILADELPHIA -- Clothing and home decor retailer Urban Outfitters Inc. said Monday that second-quarter profit rose 8 percent, beating expectations, on higher sales at its namesake and Anthropologie stores.
The shares climbed more than 16 percent in after-hours trading.
CEO Richard A. Hayne said Urban Outfitters expects gradual improvement in the company's business along with tighter inventories the rest of the year.
Net income for the period ended July 31 rose to $61.3 million, or 42 cents per share, from $56.7 million, or 35 per share, a year earlier.
Revenue rose 11 percent to $676.3 million.
Analysts expected the company to earn 33 cents per share on revenue of $672 million, according to FactSet.
Companywide sales at stores open at least one year rose 4 percent but fell 1 percent after excluding direct-to-consumer sales. The same-store figure is watched closely as an indicator of retail strength because it eliminates the effect of new stores and closings.
By segment, sales rose 14 percent at the Urban Outfitters chain and 3 percent at Anthropologie. The company also operates the Free People wholesale business.
The shares closed at $31.28, down 12 cents. In late trading after the earnings report, they were up $5.24, or 16.8 percent, at $36.52.