Driven by strong spending on part of its consumers, apparel retailer Urban Outfitters Inc reported first-quarter profit and sales that handily beat analysts’ estimates.
Offering fewer discounts as well as investing more on its website helped the company boost its sales and margins which rose to 32.8 percent from 31.5 percent a year earlier.
All brands under the Urban Outfitter umbrella, including Anthropologie and Free People, posted better-than-expected same-store sales growth in the quarter ended April 30.
According to Thomson Reuters I/B/E/S, sales at stores open at least a year rose by 10 percent in the first quarter, beating analysts expectations for a 8.8 percent rise. Its net income rose to $41.3 million, or 38 cents per share, in the quarter ended April 30, from $11.9 million. Excluding items, the company earned 38 cents per share. Net sales rose 12.4 percent to $855.7 million. Analysts had expected the company to earn 31 cents per share on revenue of $838.1 million.
However, its shares declined by about 1.5 percent at $40.60 in after-market trading. The company expects to post second-quarter same-store sales growth “fairly consistent” with the first quarter.