Urban Outfitters keeps momentum

Tuesday was a key day for American apparel stocks as a handful of leading players

reported quarterly and full-year results. Urban Outfitters has kept building momentum, getting praise from customers and investors alike.

Urban Outfitters Inc. (NASDAQ:URBN) gained 9.5 percent to 43.72 dollars after posting second-quarter earnings of 51 cents a share, surpassing the average estimate of 48 cents a share. Comparable sales during the period rose 9 percent, more than the 8.1 percent jump expected by analysts.

Analysts at Trefis highlighted that “the momentum in Urban Outfitters’ business continued in Q2 fiscal 2014 despite economic headwinds. The retailer reported a staggering 25 percent jump in profits, which was better than the market’s expectations.”

“In a weak quarter for apparel retail, the company’s revenues and comparable store sales increased by 12 percent and 9 percent respectively with gross margins up 169 basis points.

This performance can be attributed to strong customer response to its product offerings, fewer markdowns and rapid e-commerce growth. We expect Urban Outfitters’ growth to continue in the near term driven by Anthropologie’s revival, its growing direct-to-consumer business and Free People brand’s sales growth,” Trefis analysis team advanced in a note issued Tuesday.

Meanwhile, discounted price apparel chain TJX Cos. (NYSE:TJX) rose 5.5 percent to 53.53 dollars on the back of its full-year profit forecast. TJX Cos. Has reported second-quarter earnings and sales that surpassed analysts’ estimates. In the same vein, the company updated its FY14 earnings guidance on Tuesday, setting its earnings per share (EPS) guidance at 2.74-2.80 dollars for the period, compared to the Thomson Reuters consensus estimate of 2.82 dollars.

Finally and still in the US, Edward W. Stack, Executive Chairman and Chief Executive Officer at Dick´s Sporting Goods highlighted the “strong results” delivered by their e-commerce channel during the second quarter.

“While we generated record non-GAAP earnings of 0.71 dollars per diluted share, excluding an asset impairment charge, this was below our guidance of 0.75 to 0.77 dollars. The lower than anticipated earnings were driven by lower than expected same-store sales. Total sales increased 6.6 percent in the second quarter, driven by the growth in our store network, offset by a decline in same-store sales,” Stack summarised the quarterly results.