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Urban Outfitters Profit Falls But Tops Expectations

Industries Dow Jones Newswires

Urban Outfitters  said its earnings fell in the holiday quarter, marking the retailer's second consecutive decline in annual profit. 

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Still, results were better than projected, sending shares up 5.7% to $29.75 in late trading. 

For the period ended Jan. 31, Urban Outfitters reported a profit of $72.9 million, or 61 cents a share, compared with $80.3 million, or 60 cents a share, a year earlier. The current year's results are based on a 16% decline in outstanding shares, helping the company preserve the per-share payout. 

Analysts surveyed by Thomson Reuters had projected 56 cents a share. 

Gross profit margin--or the percentage of sales the retailer makes after accounting for production costs--was 34.5%, down slightly from 34.6%. 

Sales, which the company had already reported last month, were largely flat from the year-ago period at $1.01 billion. 

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The Philadelphia-based retailer, which opened its first store in 1970 near the University of Pennsylvania campus, has expanded into a multinational clothing company with more than $3 billion in sales a year under the Urban Outfitters, Free People, Anthropologie, BHLDN and Terrain brands. 

The retailer has reported a sales slowdown at its two largest brands, Urban Outfitters and Anthropologie Group, which also includes BHLDN and Terrain. 

Write to Maria Armental at maria.armental@wsj.com