Teen retailer back in favor

Urban Outfitter Inc. turned in a better-than-expected performance in the second quarter amid increased sales and fewer promotions and markdowns.



“Urban has now regained its position as the brand leader for young people,” said Urban Outfitters CEO Richard A. Haynes during the chain’s quarterly conference call.



The apparel retailer reported earnings of $76.9 million, or 66 cents per share, which topped Wall Street expectations for earnings of 56 cents per share, compared with $66.8 million, or 52 cents a share, in the year-ago period.



Revenue totaled $890.6 million in the period, also surpassing Street forecasts.



Same-store sales rose 1%, also better than expected, fueled by a 5% increase at the company’s namesake brand. Same-store sales were flat at Free People, and fell 3% at the Anthropologie division.



These results were driven by a positive retail segment 'comp' and substantial improvement in merchandise margins," said Hayne in the earnings release.