Shares of apparel company Urban Outfitters (URBN) – Get Report fell after the company reported second quarter results ahead of analyst estimates.
The Philadelphia company reported second-quarter revenue of $1.16 billion with earnings of $1.28 per share. Analysts were expecting revenue of $1.09 billion with earnings of 78 cents per share.
“We’re pleased to report record second quarter sales and earnings driven by extraordinary performance at all three brands,” said CEO Richard Hayne. “Congratulations to all Brand, Creative and Shared teams for the exceptional execution that led to a 110% increase in earnings per share over fiscal 2020.”
Despite the strong results, Urban Outfitters shares dropped 7.66% to $37.61 after hours Tuesday.
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Net sales increased 20.3% compared to 2019 levels with its comparable retail segment increasing 22%, driven by double-digit growth in digital channel sales that offset low-single digit decreases in retail sales.
Earlier this week, the company's board of directors authorized the repurchase of 20 million common shares.
The company reported overall net income of $127.3 million, up from $34.4 million a year ago and $60.3 million in the second quarter of 2019.
The company's flagship Urban Outfitters and Anthropologie Group brands led the way with sales of $441.6 million and $450.5 million, respectively in the quarter.
In the previous quarter, Morgan Stanley analyst Kimberly Greenberger set an overweight rating and $44 price target on the company following its earnings, saying “The URBN customer very likely replenishes her wardrobe this fall, and new bottoms silhouettes are driving wardrobe refreshes.”