Shares of American multinational clothing corporation, Urban Outfitters (NASDAQ: URBN) continue to rally well over 15% after the company announced impressive quarterly performance during after-hours on Tuesday. The popular retailer posted second-quarter fiscal earnings of 66 cents per share on $891 million in revenue surpassing analysts’ expectations.
“These results were driven by a positive retail segment ‘comp’ and substantial improvement in merchandise margins,” said CEO of Urban Outfitters, Richard Hayne in a press release.
On Wednesday, Richard Jaffe of stock investment company, Stifel said in a report that Urban Outfitter’s latest fashion line boosted its earnings, and is likely to lift its apparel sales for the next quarter.
“The deliberate and thoughtful store growth throughout the company’s history has resulted in a business that is right sized, not overstored, appropriate in this omni-channel retail environment,” said Jaffe.
Jefferies analyst Randal Konik also increased his target price to $40 from $38. Konik said Urban’s results are a clear positive for the industry as a whole, especially in teen retail.
“We were pleased to hear [management] cite an influx of new fashion trends as a factor behind [Urban Outfitters’] improvement,” he said in the report. “This should prove to be a tail wind for the industry, [especially] teen retail, and should build into fall as these trends gain broader acceptance.”