Urban Outfitters reported depreciated third-quarter earnings on Thursday, but beat Wall Street expectations, causing shares to jump.
For the three months ended Oct. 31, net income dropped 7.3 percent to $34.5 million, or 21 cents a share, from $37.2 million, or 22 cents a share, in the year-ago period. Analysts predicted earnings of 18 cents a share.
Company shares rallied in morning trading, and later closed up 13.3 percent to $21.53.
The company previously reported a 7 percent increase in sales for the quarter to $308.4 million from $288.8 million last year. Total same-store sales fell 10 percent. By brand, comps declined 10 percent at Anthropologie and Urban Outfitters and increased 9 percent at Free People.
For the nine-month period, net income dropped to $80.5 million, or 48 cents a diluted share, from $95.2 million, or 56 cents. Total sales rose to $863.9 million from $773.5 million.
"I see significant opportunity for our brands in the coming quarters. More customers are embracing the new fashion silhouette, we are beginning to anniversary weaker comp-store sales and we continue to make headway on improving our fashion offering," Richard Hayne, chairman and president, said in a statement.
The company plans to open 32 to 33 new stores by the end of this year, on top of 22 stores already opened in fiscal 2006.
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