Fashion is reportedly back in style, and according to Urban Outfitters executives, this is the sole reason the company’s same-store sales increased across all three of their top brands for the first time in 2 years.
Shares of Urban Outfitters (NASDAQ:$URBN) were up more than 4% on Tuesday after the Philadelphia-based company disclosed that same-store sales increased 2% at Anthropologie, 5% at Free People, and were up 1% at Urban Outfitters. As for Anthropologie, a 2% increase might not seem like a big deal, but it was the first positive same-store sales result in nine quarters.
After the report was released, J.P. Morgan (NYSE:$JPM) upgraded the stock from ‘neutral’ to ‘overweight’ and increased its price target from $26 to $34.
“Quite simply, fashion is back and it’s selling,” said CEO Richard Hayne. On the earnings call, Hayne added that sales of regular-price women’s apparel were positive at each of their brands.
According to Wells Fargo (NYSE:$WFC), Urban Outfitters earnings were boosted by a comeback in bottoms, which is a category that has suffered for years. “While Urban Outfitter’s performance the past 18 months has clearly been choppy, it’s difficult to ignore the inflection that has occurred in Q3.”
Shares of the company are up 56% for the last three months but have been down 20.8% for the past year.
Featured Image: twitter
