Urban Outfitters Posted a Fourth Straight Period of Sales Growth
(Bloomberg) -- Wall Street is liking what it sees at Urban Outfitters Inc.
The owner of Anthropologie, Free People and its namesake chain posted a fourth straight quarter of same-store sales gains, and topped analysts’ estimates. The shares climbed in late trading.
Chief Executive Officer Richard Hayne’s investments in digital offerings, international growth and expanding the company’s wholesale market are paying off. Positive reaction to the results, along with those of TJX Cos. earlier Tuesday, suggest a divide between how Wall Street currently views retailers. Department stores Kohl’s Corp. on Tuesday and Macy’s Inc. last week posted sales gains, but not enough to satisfy investors.
Shares of Urban Outfitters rose as much as 6.8 percent to $51 in after-hours trading. The shares had already climbed 36 percent this year through Tuesday’s close.
Second quarter same-store sales overall rose 13 percent in the quarter that ended July 31. All three of its brands posted double-digit results that exceeded estimates, led by 17 percent growth at Free People. Analysts projected a gain of 11.2 percent overall and 14.2 percent at Free People.
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