Urban Outfitters Q2 Profit Tops Views, Shares Gain

Shares of

surged over 4 percent in after-hours trading after the company reported better-than-expected earnings for the second quarter. The Philadelphia, Pennsylvania-based company reported quarterly net income of $66.8 million, or $0.52 per share, compared to $67.5 million, or $0.49 per share, in the year-ago period. Its net sales rose 7 percent year-over-year to $867.5 million. However, analysts were expecting earnings of $0.49 per share on revenue of $881.16 million. The average estimate among 29 Estimize users was for earnings of $0.48 per share and revenue of $877.1 million. Comparable retail segment net sales gained 4 percent in the quarter. Comparable retail segment sales at Free People rose 14 percent, while comparable retail sales gained 4 percent at Urban Outfitters. Comparable retail segment sales surged 2 percent at the Anthropologie Group. Wholesale segment net sales surged 21 percent during the quarter. As of July 31, 2015, total inventories rose 6 percent year-over-year. "We are pleased to announce record sales for the second quarter driven by positive retail segment comp growth at each brand," said Richard A. Hayne, Chief Executive Officer. "Without question, the brands` strong execution of our long-term strategy helped fuel that sales growth and laid the groundwork for future increases, as well," added Mr. Hayne. Urban Outfitters shares gained 4.31 percent to $33.61 in the after-hours trading session.