By  on August 18, 2014

Urban Outfitters Inc.’s troubled namesake division is showing signs of progress but could lead the company to further margin erosion in the just-begun third quarter.

That assessment from chief financial officer Frank Conforti came Monday as the company reported lower earnings that matched Wall Street’s expectations and a revenue performance that, largely on the strength of its high-flying Anthropologie and Free People brands, exceeded them.

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