Urban Outfitters, Inc. (NASDAQ:URBN) shares jumped 14% pre-market on Wednesday after the fashion retailer said it had made record sales and profits in the past quarter.
Net sales for the three months to end-October grew 6.3% to $1.36 billion, beating Wall Street expectations of $1.34 billion.
Retail net sales rose 3.2% as the company opened 36 new retail locations while closing 11 during the period, while comparable retail sales inched up 1.5%.
Adjusted earnings per share of $1.10 also surpassed the average analyst forecast of $0.85.
Among the group's different retail brands, Anthropologie's comparative sales rose 5.8%, Free People increased 5.3%, while Urban Outfitters declined 8.9%.
Clothing rental service Nuuly saw net sales surge 48.4%, driven by a 51% increase in average active subscribers.
CEO Richard Hayne said sales and earnings both exceeded internal expectations, with the results "driven by outperformance across all three business segments – retail, subscription and wholesale.
"Additionally, we're optimistic about the outlook for Holiday demand and believe total comparable sales could be similar to our third quarter results."