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Urban Outfitters Q2 Profit Climbs 25% (URBN)

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Teen apparel retailer, Urban Outfitters Inc. (NASDAQ: URBN) said late on Monday that its fiscal second-quarter net income jumped 25%, aided by stronger margin and solid growth in same-store-sales, across all brands.

Shares rallied in afterhours trading as earnings topped Street’s estimate. Revenue also rose but fell short of expectation.

Same-store-sales, (excluding online and catalog sales), rose 9% in the recently concluded quarter.

Same-store-sales is a key gauge on retailer’s performance as it strips out erratic sales from those stores that were shuttered or opened less than 12 months ago.

Same-store-sales, rose 5% at its namesake brand, increased 9% at Anthropologie and jumped 38% at Free People.

However, the challenge now is whether the Company will be able to maintain the same momentum in the second half of the year. Analysts are anxious how the company performed during traditionally weak summer months. However, analysts at Stifel Nicolaus, an investment bank, are confident that the company will continue its good showing, citing “trend-right merchandise”, according to the Wall Street Journal.

For the fiscal second quarter ended July 31, the Company reported a net income of $76.4 million or 51 cents a share compared to a profit of $61.3 million or 42 cents a share, in the same quarter of last year. Sales climbed 12% to $758.5 million.

Analysts’ consensus estimate was for earnings of 48 cents a share on revenue of $768 million, according to a data compiled by Thomson Reuters.

Gross margin widened to 39.3% from 37.6%, in the same quarter of last year, as the company sold fewer items on markdown prices.








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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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