Please ensure Javascript is enabled for purposes of website accessibility

Why Urban Outfitters Stock Popped Today

By Jeremy Bowman - Feb 9, 2018 at 4:38PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Shares of the diversified apparel chain jumped on a strong quarterly sales report.

What happened

Shares of Urban Outfitters (URBN 2.14%) were moving higher today after the lifestyle brand posted strong comparable sales for its fourth quarter, and total sales that beat analyst estimates. As a result, the stock closed up 5.8% today.

So what

Urban said total net sales for the quarter grew 5.7% to $1.09 billion, edging out expectations at $1.08 billion. Comparable sales increased 4% in its retail segment, driven by double-digit growth in online sales, which outweighed negative store-based sales. All three of its major brands saw comps rise, with an 8% jump in Free People, 5% increase in Anthropologie, and 2% uptick at Urban Outfitters.

Three images of a model in different outfits

Image source: Urban Outfitters.

Wholesale revenue increased 6.3% in the quarter.

CEO Richard Hayne noted that the company's sales growth actually accelerated after the holiday season, saying, "Positive comps were driven primarily by stronger apparel sales with January registering particularly powerful year-over-year results."

Now what

Urban Outfitters' report comes after retailers broadly reported strong holiday sales, and is the first indication that that trend seemed to continue into the new year. Shares of the apparel and lifestyle company have now doubled since hitting bottom last summer as the company's financial performance has steadily improved, especially on the strength of the Free People brand.

Urban Outfitters will release its complete fourth-quarter earnings report on March 6, when investors will gain insight into how the strong sales growth affected the bottom line. Analysts are expecting a per-share profit of $0.62, up from $0.55 a year ago.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Urban Outfitters, Inc. Stock Quote
Urban Outfitters, Inc.
URBN
$19.06 (2.14%) $0.40

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
316%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/04/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.