Urban Outfitters Helped by Strong Demand for 'Free People' Line

Urban Outfitters (URBN) reported better than expected profit on strong demand for its 'Free People' line of bohemian and vintage clothing and recovering sales at its flagship brand. Trendy, fashionable clothing, tight inventory controls and investments in e-commerce have helped Urban Outfitters return its namesake brand to growth in the face of stiff competition and a retail environment where promotions and discounts are the norm. However, Urban Outfitters says comparable sales this quarter are off to a slow start in the critical back-to-school season. Shares of Urban Outfitters are down 8% so far this year as of Monday's close as investors have worried about tight margins and the strong U.S. dollar.