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Urban Outfitters Inc. reported stronger-than-expected sales growth in the third quarter, led by its Anthropologie brand.
Sales at stores open at least 12 months rose 1.5 percent in the quarter ended Oct. 31, beating analysts’ expectations for 1.3 percent growth. Anthropologie sales were up 5.8 percent, the company said Tuesday in a statement.
The results suggest that Urban Outfitters is faring better than other apparel retailers that are vying to attract increasingly budget-conscious consumers into their stores. Many companies have called out softer spending heading into the key holiday shopping season.
Shares of Philadelphia-based Urban Outfitters rose 5.8 percent in extended trading at 4:19 p.m. New York time. The stock had gained 12 percent through Tuesday’s close.
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Excluding some items, earnings in the quarter were $1.10 per share, topping the 86-cent average estimate of analysts surveyed by Bloomberg. Gross margin also beat expectations.
Urban Outfitters’ Nuuly, Free People and Anthropologie brands have been gaining traction on social media in recent years, helping to offset a slump in the company’s namesake brand. Notably, Free People’s athleisure line, FP Movement, has been a significant growth driver.
By Julia Fanzeres
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