What happened

Shares of Urban Outfitters, Inc. (NASDAQ:URBN), a specialty lifestyle products retailer with brands such as Anthropologie, Free People, and its namesake Urban Outfitters, are up 6.6% as of 11:05 a.m. EDT after the company announced fiscal second-quarter 2019 results, and it's for one simple reason: growth.

So what

In fact, same-store sales during the fiscal second-quarter 2019 jumped an impressive 13% compared to the prior year, with all three brands posting double-digit results. Rising same-store sales fueled a 14% increase in total company net sales during the quarter to a record $992 million, above analysts' estimates calling for $981 million. Earnings per share checked in at $0.84, well above the prior year's $0.44-per-share mark and ahead of analysts' estimates calling for $0.77 per share.

Young adults sitting on a bench with colorful shopping bags at their feet.

Image source: Getty Images.

"I'm pleased to announce our teams produced record Q2 sales and earnings per share," said CEO Richard A. Hayne in a press release. "All three brands delivered double-digit Retail segment 'comp' sales and lower markdown rates to drive these results." 

Now what

URBN Chart

URBN data by YCharts.

It's been a strong 12 months for Urban Outfitters as its investments in digital offerings and international growth are clearly paying off and have helped power four straight quarters of same-store sales gains -- quite a feat as many retailers have struggled in recent years. Another positive takeaway was the company's 320-basis-point operating income margin, up to 11.8% during the second quarter.

What investors will want to watch going forward is whether the company can maintain those levels as its digital business, typically the lower-margin business, becomes a larger portion of net sales.