NEW YORK ( TheStreet) -- Investors didn't seem to care that Urban Outfitters (URBN) came up with softer-than-expected quarterly sales, as the teen retailer's shares jumped 7% in post-markets trading on Monday following better-than-expected earnings resuts.
The Philadelphia-based retailer, which also owns Anthropologie, BHLDN, Free People, Terrain and its flagship Urban Outfitters brand, reported record second-quarter net income of $76.3 million, or 51 cents a share. Net income rose 25% from a year earlier.
Revenue was up 12% to $758 million, with the biggest portion -- in terms of dollars -- coming from its Anthropologie brand.
The company's comparable retail net sales rose 9% over the prior year's quarter. Broken down by brand, comparable net sales jumped 38% at Free People, 9% at Anthropologie and 5% at Urban Outfitters. Net sales through its wholesale segment rose 17%.Analysts polled by Thomson Reuters on average estimated the company would earn 48 cents a share on revenue of $768 million, up 14% year over year. The stock was up 7% to $42.53 after the market closed. "I am pleased with the strong results we delivered this quarter," CEO Richard Hayne said in the earnings release. "They were driven by a favorable customer response to our product offerings, improved merchandise margins, the opening of additional stores, and better creative and marketing initiatives in our direct-to-consumer channel." Also see: Will TJX Be Retail's Winner This Earnings Season? Also see: Wal-Mart Disappoints On Earnings, Kohl's Profit Slips Also see: American Eagle Cuts Guidance, Shares Tank Urban Outfitters' gross profit rate improved by 169 basis points over last year, it said, which it attributed to "a reduction in merchandise markdowns primarily driven by improvements at the Anthropologie brand." As of July 31, total inventories rose by $24 million, or 8%, on a year-over-year basis, reflecting purchases to stock new and non-comparable stores. Comparable retail segment inventories were flat, the company said. Urban Outfitters earnings beat shows that not all retailers are struggling this earnings season. Observers had pointed specifically to a troubled teen retail sector following the earnings warnings by American Eagle Outfitters (AEO) and Aeropostale (ARO) this month. Abercrombie & Fitch (ANF) and The Gap (GPS) reports its quarterly results on Thursday. -- Written by Laurie Kulikowski in New York. Follow @LKulikowski To contact Laurie Kulikowski, send an email to: Laurie.Kulikowski@thestreet.com. >To submit a news tip, email: firstname.lastname@example.org.
Follow TheStreet on Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV