Urban Outfitters flat after reporting first quarter results (URBN)
- Urban Outfitters shares were flat in after-hours trading on Tuesday after the company reported its first-quarter results.
- The company posted record first-quarter sales as earnings also came in above expectations.
- Watch Urban Outfitters trade live.
Urban Outfitters shares were flat in after-hours trading on Tuesday after the company reported its first-quarter results.
The retailer said it had record first-quarter sales of $864 million and net income of $32.6 million, both coming in above what analysts surveyed by Bloomberg were expecting. Notably, same-store sales increased 1%, easily beating the 1.3% decline that analysts were anticipating.
"We are pleased to announce record first quarter sales," said CEO Richard Hayne. "Our sales growth was driven by our seventh straight quarter of positive Retail segment 'comps' as well as continued growth in our Wholesale segment."
As the retail world continues to evolve, the company is focused on new products and innovations.
The Wall Street Journal reported on Tuesday that the company is developing a rental business, Nuuly. The business will allow customers to rent items of clothing from across Urban's brands, including Anthropologie and Free People, as well as from over 100 third-party brands, a spokesperson told Business Insider.
In addition, Urban may also see a boost from a fashion shift from skinny jeans and loose-fitting tops to high-waisted trousers and crop tops. Hayne said the changes will benefit the company for years to come.
"The macro fashion, the silhouette and the proportion changes infrequently," he said. "My experience would suggest this probably changes about once a decade."
Urban Outfitters is down 18% this year.
