Urban Outfitters misses estimations while Chico's beats market

Apparel stocks owned the session on Tuesday,

with Urban Outfitters missing estimates by just one cent and its peer Chico’s FAS beating the market’s forecasted quarterly earnings for three cents. New Look was big news in Europe while Xiniya attracted all looks in China.

In Wall Street, shares of Urban Outfitters Inc . ( URBN ) showed a moderate decline of 1.1 percent to 36.65 dollars during after-market trading hours on Monday, reported NASDAQ. Despite posting lower-than-expected third-quarter 2013 results, year-over-year earnings growth provided some cushion to the stock, explained analysts at Zacks.

Actually, the quarterly earnings of 40 cents a share missed the Zacks Consensus Estimate by a penny, but surged 21.2 percent from 33 cents earned in the year-ago quarter. Lower shares outstanding as well as top-line growth benefited the bottom line. “Currently, we have a long-term ‘Outperform’ recommendation on the stock. Moreover, Urban Outfitters, which competes with Gap Inc . ( GPS ) and Abercrombie & Fitch Co . ( ANF ), retains a Zacks #2 Rank that translates into a short-term ‘Buy’ rating,” the stock research firm said Tuesday.

Due to missing Wall Street's expectations, the company saw its shares down 5.45 percent in aftermarket.

Meanwhile, Chico's FAS (CHS), which operates Chico's, White House Black Market, and Soma Intimates stores, said third-quarter earnings jumped 39 percent to 25 cents per share, beating estimates by 3 cents. Sales climbed 18 percent to 636.67 million dollars, above views of 632.39 million, reported ‘Investors Business Daily’. Same-store sales rose 9.9 percent and gross margin widened 120 basis points to 57.2 percent from Q3 2011 on less discounting and more effective promotions. On the wake of news, shares were down 1 percent in midday trading Tuesday.

Elsewhere, in China, men´s casual apparel retailer China Xiniya Fashion Limited (Xiniya) posted revenue in the third quarter of 2012 up by 15.7 percent to 17.9 million renminbi, as compared to the 361.1 million posted a year ago. The increase in revenue exceeded the prior guidance of 8-11 percent.

Finally, New Look was big news in Europe as the British retailer was able to extend part of its debt to 2015 and announced it’s ready for a second round of refinancing.