Teen apparel retailer Urban Outfitters Inc (URBN) reported better-than-expected quarterly results as the trendy merchandise at its Anthropologie and Free People stores appealed to shoppers.

The company's shares rose as much as 2 percent in extended trading on Monday.

Urban Outfitters is handling the weakness in spending by teens better than Abercrombie & Fitch Co, which posted another fall in quarterly same-store sales this month as its basic styles failed to resonate with young customers.

Abercrombie and Aeropostale Inc have been hit by stiff competition from fast fashion retailers such as H&M and Forever 21 that quickly change their merchandise in line with the latest fashion trends.

Urban Outfitters' overall same-store sales rose 7 percent in the third quarter ended Oct. 31.

Comparable-store sales at Anthropologie rose 13 percent, while those at Free People jumped 30 percent.

Urban Outfitters sells women's clothing, accessories, home furnishings and gifts under the two brands.

The company's net income rose to $70.3 million, or 47 cents per share, in the third quarter from $59.5 million, or 40 cents per share, a year earlier.

Revenue rose 12 percent to $774 million.

Analysts on average had expected a profit of 45 cents per share on revenue of $770.5 million, according to Thomson Reuters I/B/E/S.

However, same-store sales at Urban Outfitters brand fell 1 percent. The company also reported an increase in merchandise markdowns at this brand in North America.

Urban Outfitters shares were trading at $39.88 after the bell. The stock closed at $39.64 on the Nasdaq on Monday.