Urban Outfitters Inc., operator of the namesake and Anthropologie clothing chains, gained the most in almost two years in Nasdaq trading after fiscal third-quarter profit surpassed analysts’ estimates.
Net income rose 17 percent to $73.1 million, or 43 cents a share, in the quarter ended Oct. 31, from $62.3 million, or 36 cents, a year earlier, the Philadelphia-based company said in a statement yesterday after U.S. markets closed. Analysts expected 42 cents, the average of 25 estimates compiled by Bloomberg.
“Promotions had been somewhat high and there was some investor worry heading into the quarter,” said Edward Yruma, a New York-based analyst for Keybanc Capital Markets who recommends holding Urban shares. “Results were decent. The company is clearly aggressively repurchasing shares and feels good about the holiday season.”
Urban surged $3.90, or 12 percent, to $36.64 at 4 p.m. New York time in Nasdaq Stock Market trading for the largest percentage increase since Nov. 21, 2008. The stock has gained 4.7 percent this year.
Sales at stores open a year rose 1 percent in the third quarter and will show the same gain in the current quarter, Chief Financial Officer Eric Artz said yesterday on a conference call with analysts. Same-store sales will increase in the low- single digits next year, he said.
“We are well positioned as we head into the holiday season,” Artz said.
The company repurchased or retired 4.3 million shares for $133 million during its past quarter.
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