Urban Outfitters is surging after trouncing expectations for earnings and sales
Urban Outfitters shares jumped by nearly 9% in after-hours trading on Tuesday after the company reported earnings and sales that were better than analysts expected.
The apparel retailer said it earned $0.66 in adjusted earnings per share, on record revenue of $890.6 million.
Analysts had forecast adjusted EPS of $0.55 and revenue of $885.6 million, according to Bloomberg.
Comparable-store sales — at locations open for at least one year — rose 1%, beating the forecast for a decline of 1.2%.
"These results were driven by a positive retail segment 'comp' and substantial improvement in merchandise margins," said CEO Richard Hayne in the earnings statement.
Comparable-store sales at Urban Outfitters branded stores jumped 5%. Although they were flat at Free People stores and down 3% at Anthropologie, they were stronger than estimated.
The company's expenses increased year-over-year during the quarter as it spent more on marketing and technology.
Urban Outfitters shares have gained 37% this year.