Shares of Urban Outfitters (URBN +13.85%) popped on Wednesday after the apparel seller reported strong fiscal third-quarter earnings.
As of 2:40 p.m. EST, Urban Outfitters' stock price was up more than 13%.
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Urban Outfitters is enjoying broad-based growth
Urban Outfitters' net sales leaped 12% to $1.5 billion in the quarter ended Oct. 31. The retailer saw solid revenue gains across its stores and online channels.
Comparable sales at the company's Urban Outfitters, Anthropologie, and Free People brands rose 12.5%, 7.6%, and 4.1%, respectively. "We are especially pleased to report that all brands produced positive comps across all geographies this quarter," CEO Richard Hayne said during a conference call with analysts.
NASDAQ: URBN
Key Data Points
Moreover, Urban Outfitters' gross margin improved slightly to 36.8%. Tighter inventory controls and lower markdowns contributed to the gains.
Urban Outfitters' net income, in turn, increased 13% to $116 million. The company's earnings per share, which were boosted by stock buybacks, jumped 16% to $1.28. That bested Wall Street's expectations for per-share profits of $1.18.
Management sees more market share gains ahead
Chief financial officer Melanie Marein-Efron expects Urban Outfitters to deliver high-single-digit sales growth in the fourth quarter.
Looking further ahead, Hayne sees the lifestyle retailer growing at a faster clip than its rivals.
"These results underscore the strength of our diversified business model, which enables us to continue capturing market share and drive consistent long-term growth," Hayne said.
