Urban Outfitters sales beat expectations

Despite falling share value, Urban Outfitters’ brands beat sales expectations in the third quarter as sales rose at all three stores: Urban Outfitters, Anthropologie and Free People.
Philadelphia, PA (AHN) – Urban Outfitters Inc. announced Thursday third quarter earnings rose 31 percent as the company booked a 26 percent rise in revenue on strong same-store sales.The clothing retailer posted third quarter earnings of $59.3 million or 35 cents a share, up from $45.4 million or 27 cents a share in the same period a year earlier.Revenue jumped 26 percent to $478 million, up from $379.3 million last year. The result was pushed by a 10 percent jump in same-store sales.Same-store sales were particularly strong at the company’s namesake stores, rising 17 percent. Sales at its Free People brand stores rose 4 percent while sales at its Anthropologie stores rose 2 percent.The results were in-line with analyst estimates for earnings of 35 cents a share on revenue of $478.9 million.”The reaction at our retail partners has far exceeded expectations, so we continue to be encouraged by the brand’s growth prospects,” said CEO Glen T. Senk, according to the Associated Press.Urban Outfitters saw gross margin tick up to 40.9 percent in the third quarter, from 39.5 percent last year.The company saw a large jump in internet and catalog sales, up 41 percent. However, the segment represents the company’s smallest revenue source.Shares of Urban Outfitters rose 9.4 percent to $16.65 on Thursday.Good news for the biz side. I am surprised that online sales are their smallest revenue source. I suppose that since their stores are populated by several brands you really need to try on their clothing before buying.

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