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Urban Outfitters is surging after trouncing expectations for earnings and sales

Aug 17, 2016, 01:51 IST

Flickr/Mike Mozart

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.

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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.

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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.

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