(Bloomberg) -- Urban Outfitters Inc. reported stronger-than-expected sales growth in the third quarter, led by its Anthropologie brand.
Shares of Urban Outfitters rose 12% as of 9:34 a.m. New York time, the biggest intraday jump since May 2023. The stock had gained 12% this year to date through Tuesday’s close.
Sales at stores open at least 12 months rose 1.5% in the quarter ended Oct. 31, beating analysts’ expectations for 1.3% growth. Anthropologie sales were up 5.8%, the company said Tuesday in a statement.
The results suggest that Urban Outfitters is faring better than other apparel retailers that are vying to attract increasingly budget-conscious consumers into their stores. Many companies have called out softer spending heading into the key holiday shopping season.
Excluding some items, earnings in the quarter were $1.10 per share, topping the 86-cent average estimate of analysts surveyed by Bloomberg. Gross margin also beat expectations.
Urban Outfitters’ Nuuly, Free People and Anthropologie brands have been gaining traction on social media in recent years, helping to offset a slump in the company’s namesake brand. Notably, Free People’s athleisure line, FP Movement, has been a significant growth driver.
(Updates with share moves in second paragraph.)
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