Investing.com -- Urban Outfitters Inc (NASDAQ:URBN) shares rose 6% in premarket Wednesday after it beat expectations for the second quarter as same-store sales rose.
The apparel retailer reported earnings per share of $1.10 on revenue of $1.27 billion. Analysts expected earnings per share of 89 cents and revenue of $1.25B. Revenue was up 8% from the same quarter last year.
Comparable retail segment net sales rose 5%, driven by growth in retail store and online sales. By brand, comparable retail segment net sales rose nearly 27% at Free People Group and 11% at Anthropologie Group. Sales fell 14% at Urban Outfitters.
CFRA analysts downgraded the stock to Sell in the aftermath of the earnings report.
On the other hand, Morgan Stanley analysts reiterated an Overweight rating.
"Despite cont’d UO underperformance, URBN delivered an impressive EPS beat on Anthro/FP & GM strength. Given room for further UO inflection, likely positive EPS revisions, & cheap valuation, we still see stock upside from here. But, intraquarter data monitoring key from here, & keeps us nimble. Stay OW for now," the analysts said.
(Additional reporting by Senad Karaahmetovic)