Urban Outfitters, Inc. (NASDAQ:URBN) shares fell more than 5.75% to US$34.21 in premarket movements on Wednesday despite the retailer posting better-than-expected sales and profits for the third quarter.
The retailer, whose brands include Anthropologie, Free People, FP Movement, Urban Outfitters and Nuuly, reported a 9% year-over-year increase in revenue to a record $1.28 billion, above estimates of $1.26 billion.
Earnings per share (EPS) of $0.88 more than doubled from $0.40 in the year-ago quarter and topped estimates of $0.81.
“We are proud to report record third-quarter sales that helped drive a 120% increase in EPS,” Urban Outfitters CEO Richard Hayne said.
“As we enter the holiday season the consumer continues to react positively to our assortments and marketing campaigns at four out of five of our brands which leaves us confident we can continue to drive revenue and earnings growth in the fourth quarter.”
Urban Outfitters shares initially added 1.4% at US$36.80 shortly following the release of its earnings report on Tuesday.
Contact the author at emily.jarvie@proactiveinvestors.com
Follow her on X, formerly known as Twitter, @emilyjjarvie
Updated for share price movements