Urban Outfitters, Inc (NASDAQ:URBN) has reported record first-quarter sales and a solid earnings beat, sending its shares soaring in Wednesday morning trading.
The Philadelphia-based operator of Urban Outfitters, Free People and Anthropologie stores, among others, posted a 5.9% rise in sales to $1.11 billion for the three months ended April 30, 2023, above the $1.09 billion expected by Wall Street analysts.
By brand, the company said comparable retail segment net sales rose 17% at the Free People Group and 13% at the Anthropologie Group and decreased by 13% at Urban Outfitters.
Wholesale segment net sales fell 11% driven by a 14% decrease in Free People Group wholesale sales due to a fall in sales to department stores and specialty customers.
Net income was $52.8 million, resulting in record first-quarter earnings per diluted share of $0.56, above the $0.35 expected by the Street.
“We are pleased to report record first-quarter sales and earnings per share driven by a 5% increase in comparable Retail segment sales, strong growth in Nuuly Rent and a significant improvement in gross margins,” CEO Richard Hayne said in a statement.
“We are equally pleased that Q1’s sales strength has continued quarter-to-date.”
The company's shares were 16.5% up at $31.05 by noon in New York.
Contact the author at stephen.gunnion@proactiveinvestors.com