PHILADELPHIA -Urban Outfitters Inc.'s fiscal first-quarter profit beat analysts' expectations with help from a 9 percent rise in sales.
The news sent the struggling company's shares up after hours on Monday.
Urban Outfitters, which owns the Free People, Anthropologie, Terrain and BHLDN brands, has struggled with weak sales and heavy discounting.
It said its net income was $34 million, or 23 cents per share, for the quarter that ended April 30.
That's down from $38.6 million, which also amounted to 23 cents per share because the company had more shares outstanding. But analysts were expecting only 20 cents per share, according to FactSet.
The Philadelphia-based company's total revenue rose to $568.9 million from $524 million. Analysts were expecting $579.7 million.
Urban Outfitters said revenue its namesake stores open at least a year rose 6 percent and from Free People stores, 2 percent. But revenue fell 2 percent at Anthropologie stores open at least a year.
The comparison is considered key for retailers because it isn't skewed by results from stores that recently opened or closed.
The company's sales direct to consumers increased 15 percent, and sales in its small wholesale segment rose 2 percent.
"We are encouraged by the customer response to the steady progress our brands have made in creative and product execution," CEO Richard Hayne said in a statement.
Shares of Urban Outfitters rose 84 cents, or 3.2 percent, to $27 after hours. They ended regular trading at $26.16, up 54 cents.
The company operates 170 Anthropologie stores, 69 Free People stores, 2 BHLDN stores and one Terrain Garden center. It also sells Free People products to roughly 1,400 specialty retailers.
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