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City Outfitters Inc. reported stronger-than-expected gross sales development within the third quarter, led by its Anthropologie model.
Gross sales at shops open a minimum of 12 months rose 1.5 % within the quarter ended Oct. 31, beating analysts’ expectations for 1.3 % development. Anthropologie gross sales have been up 5.8 %, the corporate stated Tuesday in a press release.
The outcomes counsel that City Outfitters is faring higher than different attire retailers which are vying to draw more and more budget-conscious customers into their shops. Many firms have known as out softer spending heading into the important thing vacation buying season.
Shares of Philadelphia-based City Outfitters rose 5.8 % in prolonged buying and selling at 4:19 p.m. New York time. The inventory had gained 12 % by Tuesday’s shut.
Excluding some objects, earnings within the quarter have been $1.10 per share, topping the 86-cent common estimate of analysts surveyed by Bloomberg. Gross margin additionally beat expectations.
City Outfitters’ Nuuly, Free Folks and Anthropologie manufacturers have been gaining traction on social media in recent times, serving to to offset a droop within the firm’s namesake model. Notably, Free Folks’s athleisure line, FP Motion, has been a major development driver.
By Julia Fanzeres
City Outfitters Shares Sink on Disappointing Gross sales Progress
The corporate’s shares dropped as much as 12 % in premarket buying and selling after reporting quarterly gross sales development that fell wanting Wall Road’s expectations.
