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Urban Outfitters Reports Surprise Rise in Sales

May 18, 2016, 9:22 PM UTC
Christmas Shoppers Hunt For Gifts On The High Street
LONDON, ENGLAND - DECEMBER 14: Christmas shoppers walk outside Urban Outfitters on December 14, 2013 in London, England. As Christmas Day approaches, London's central shopping districts attempt to lure shoppers into stores with last minute deals in an effort to pull sales away from online outlets. (Photo by Dan Dennison/Getty Images)
Photograph by Dan Dennison — Getty Images

Apparel retailer Urban Outfitters (URBN) reported a surprise rise in quarterly same-store sales as demand recovered for its Anthropologie and Urban Outfitters lines of clothing.

Shares of the Philadelphia-based retailer, which also reported better-than-expected quarterly revenue, were up 10.5 percent after the bell on Wednesday.

The company said total comparable sales rose 1 percent in the first quarter, compared with the 0.5 percent decline analysts on average had expected, according to research firm Consensus Metrix.

The growth was driven by more compelling product assortments, improved inventory management and stronger marketing, Chief Executive Richard Hayne said in a statement.

Comparable store sales at Anthropologie, which sells women’s apparel and accessories and is the company’s biggest source of revenue, were flat but came in above the 0.5 percent decline analysts had expected.

Urban Outfitters said net income fell 9.8 percent to $29.6 million in the first quarter ended April 30.

On a per share basis, net income was unchanged at 25 cents per share due to a lower share count this year.

Net sales rose 3.2 percent to $762.6 million, higher than the $758.7 million analysts had expected, according to Thomson Reuters I/B/E/S.