UO Store Sales Rose Unexpectedly In The Two Quarter, Up 12%

U.S.A

The retailer Urban Outfitters Inc. (NASDAQ:URBN) passed the same name in the last two quarters.

The strong performance offset the continued weakness of Free People, driving the same store sales to achieve unexpected growth in the market, and the double-digit increase in earnings.

Urban Outfitters Inc. (NASDAQ:URBN) shares surged 11.9% to 34.95 dollars on Tuesday, a 52 week high and extended the stock to 53.6% in 2016.

Urban Outfitters Inc. CEO Richard Hayne, after the earnings analysts' conference call, pointed out that the return of fashion trend is one of the reasons why sales performance has improved.

In the two quarter of July 31st, the group's second major brands, Urban Outfitters, and its sales grew by 5%, far higher than the market expectations of 1.1%; Anthropologie zero growth; Free People fell 3%; while the group's same store sales increased 1%, and Consensus Metrix was expected to fall 1.2%.

In June, the group warned against a drop in median sales in the same store during the same period.

Carter Harrison, an analyst at Conlumino, a market research firm, believes that the group has focused on sports and sports and leisure activities through the sales promotion of sports products such as Urban Outfitters and Carter brand and sports brand such as Adidas and Adidas.

In the two quarter, the group's net sales increased by 2.7% to $890 million 600 thousand over the same period, which is better than the $886 million 400 thousand expected by the market.

Net profit rose 15.1% to $76 million 900 thousand a year, and diluted earnings per share rose to $0.66 from $0.52 a year earlier, 17.9% higher than the $0.56 expected in the market.

Thanks to the two brands of Urban Outfitters and Anthropologie, the sales discount has been reduced, and the gross margin has been raised by 178 basis points to 38.45%.

Group executives said at the meeting that they would strive to further reduce inventories and replenish their best sellers at a faster pace as they enter the return season.

As of July 31st, the group has 240 Urban Outfitters stores in the United States, Canada and Europe, 220 Anthropologie stores, 121 Free People stores and 7 last year's Pizza Restaurant Vetri family restaurants.

Urban Outfitters Inc. (NASDAQ:URBN) closed at $31.24 on Tuesday, no rise in all day.