Urban Outfitters (URBN) Stock Surges in After-Hours Trading on Strong Q1 Revenue
NEW YORK (TheStreet) -- Urban Outfitters (URBN) - Get Report stock is gaining 9.60% to $26.95 in after-hours trading on Wednesday after the retailer reported revenue that topped estimates and earnings in line with expectations for the fiscal 2017 first quarter.
Revenue increased 3% year over year to $762.58 million for the quarter ended April 30, while analysts had estimated revenue of $759.39 million. Earnings of 25 cents per share met estimates for the latest quarter.
The Philadelphia-based parent company of Urban Outfitters, Anthropologie and Free People also delivered better-than-expected same store sales growth of 1%. JPMorgan and BMO Capital Markets analysts were anticipating flat same store sales.
Comparable store sales increased 2% at Urban Outfitters, offsetting flat sales at Anthropologie stores and a 2% decline at Free People locations.
"These results were driven by more compelling product assortments, improved inventory management and stronger marketing," CEO Richard Hayne said in a statement.
Separately, Urban Outfitters has a "buy" rating and a letter grade of B- at TheStreet Ratings because of the company's revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, growth in earnings per share and notable return on equity.
You can view the full analysis from the report here: URBN
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
