Urban Outfitters Inc. (URBN) stock surged 5.18% in pre-market trading on Thursday, following the company's strong fiscal fourth-quarter earnings results and upbeat outlook.

The apparel retailer reported record quarterly revenue of $1.64 billion, up 10.1% 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 Urban Outfitters brand continued to face challenges with a 3% decline in retail segment comparable sales, the company's growth engines, including its 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.

Analysts reacted positively to the results, with Jefferies raising its price target on URBN to $42 from $40, citing the company's progress in improving inventory management and profitability. However, some concerns lingered around elevated inventory levels and the ongoing weakness in the Urban Outfitters brand.

"Urban Outfitters delivered a solid quarter, with impressive growth in its complementary businesses offsetting some of the weakness in the core brand," said JP Morgan analyst Sarah Thompson, who raised the firm's price target to $56. "We remain optimistic about the company's ability to capitalize on strong trends in activewear and footwear, particularly at Anthropologie and Free People."