PHILADELPHIA (dpa-AFX) - Apparel retailer Urban Outfitters, Inc. (URBN) said Monday after the markets closed that its third quarter profit rose 18% from last year, helped by strong results at its Anthropologie and Free People brands.
The company's quarterly earnings per share also came in above analysts' expectations as did its quarterly sales.
'Fueled by strong results at our Anthropologie and Free People brands, I am pleased to announce that URBN delivered record third quarter sales and operating profits,' said Richard Hayne, Urban Outfitters's Chief Executive Officer. 'Despite this solid performance we remain cautious about the fourth quarter given the likelihood of a highly promotional environment and this year's challenging Holiday calendar.'
Urban Outfitters shares are currently gaining 0.28% in after hours trading after closing the day's regular trading session at $39.64, down 53 cents or 1.32%. The shares trade in a 52-week range of $35.00 to $44.96.
Urban Outfitters, which operates stores under its namesake brand as well as, Anthropologie, Free People, Terrain, and BHLDN brands, has been able to post strong revenue growth and improved profits for the past few quarters, despite ongoing uncertain economic conditions.
Urban Outfitters stores sell women's and men's fashion apparel, footwear, accessories, and gifts, as well as apartment wares, such as rugs and pillows to young adults aged 18 to 28; and Anthropologie stores provide women?s casual apparel and accessories, shoes, gifts, decorative items, and home furnishings to women aged 28 to 45. The company's Free People stores mainly offer Free People branded merchandise mix of casual women's apparel, intimates, shoes, accessories, and gifts to young contemporary women aged 25 to 30.
For the third quarter ended October 31, 2013, the Philadelphia, Pennsylvania-based company reported net income for the third quarter of $70.3 million or $0.47 per share, compared to $59.5 million or $0.40 per share for the year-ago quarter.
On average, 35 analysts polled by Thomson Reuters expected the company to earn $0.45 per share for the third quarter.
Total net sales for the third quarter rose 12% to $774.05 million from $692.89 million in the same quarter last year. Thirty-one analysts had a consensus revenue estimate of $770.94 million for the third quarter.
Retail segment net sales rose 11% to $724.1 million, while segment net sales surged 21% to $50.0 million.
Comparable Retail segment net sales, which include the company's comparable direct-to-consumer channel, increased 7%. Comparable Retail segment net sales increased 30% at Free People and 13% at Anthropologie but decreased 1% at Urban Outfitters.
Gross margin for the quarter improved to 37.76% from 37.65%, mainly due to fewer merchandise markdowns and improved initial merchandise margins at the Anthropologie and Free People brands.
Copyright RTT News/dpa-AFX