Urban Outfitters (URBN) stock soared 5.23% in pre-market trading Thursday, following the apparel retailer's fiscal fourth-quarter results that exceeded expectations.
The company reported record quarterly revenue of $1.64 billion, up 9.4% year-over-year, driven by solid performances from its Anthropologie and Free People brands. Earnings per share of $1.04 topped Wall Street estimates of $0.95, fueled by a 17% increase in gross profit dollars and an over 200-basis-point improvement in gross profit margin.
While the core Urban Outfitters brand continued to face challenges with a 3% decline in retail segment comparable sales, the company's growth engines including wholesale operations and new business segments like Nuuly remained robust. The wholesale segment saw a 26% revenue jump, boosted by strong full-price sales at Free People, while the new business segment achieved its first full year of profitability.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.