Urban Outfitters Reports 25 Percent Jump in 2Q Profit

Urban Outfitters Interior | Source: Fanpop.com

PHILADELPHIA, United States — Urban Outfitters Inc. reported Monday that its fiscal second-quarter profit increased 25 percent on improved sales across nearly all of its brands. The company, based in Philadelphia, owns the Urban Outfitters, Anthropologie, Free People, BHLDN and Terrain retail brands.

Urban said after the market closed that its net income rose to $76.4 million, or 51 cents per share, for the quarter that ended July 31. That is up from $61.3 million, or 42 cents per share, in the same quarter last year. Its revenue increased to $758.5 million from $676.3 million with gains in both its retail and wholesale segments.

Analysts polled by FactSet were anticipating earnings of 48 cents per share on revenue of $768.4 million.

Urban’s revenue from its stores open at least a year increased 9 percent. This is considered a key indicator of a retailer’s financial performance as it strips away the impact of recently opened or closed stores. The company includes revenue from sales direct to consumers, which generally includes online and catalog sales.

CEO Richard Hayne said that he was pleased with the quarter’s results, which he attributed to strong products, improved margins and the addition of new stores, as well as better marketing efforts for its direct-to-consumer business.

Shares soared $2.53, a 6 percent increase, to $42.45 in after-hours trading following the report. Its stock had added 18 cents to close regular trading at $39.92 amid a broader market decline.