Urban Outfitters jumps after posting surprise sales rise

Jessica Morris
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Urban Outfitters owns Anthropologie and Free People (Source: Getty)

Shares in Urban Outfitters jumped nearly 10 per cent in after-hours trading on a better-than-expected set of quarterly results.

The retailer, a favourite with hipsters, reported comparable sales rose one per cent in the three months ended 31 July. This smashed analysts' expectations for a fall of 1.2 per cent, according to research firm Consensus Metrix.

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Second-quarter comparable sales at its own Urban Outfitters line swelled five per cent, also ahead of analysts' forecasts for 1.10 per cent.

Net sales rose 2.7 per cent to $890.6m during this period, while net income rose swelled 15.12 per cent to $76.9m.

Read more: Urban Outfitters sales have risen at last, with earnings per share ahead of expectations

"I am pleased to announce our teams delivered record second quarter sales and earnings per share," Richard Hayne, the group's chief executive, said.

"These results were driven by a positive retail segment 'comp' and substantial improvement in merchandise margins," he added.

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