Urban Outfitters Inc. (URBN - Free Report) just released its second quarter fiscal 2018 financial results, posting earnings of 44 cents per share and revenues of $873 million. Currently, URBN is a #4 (Sell) on the Zacks Rank, and is surging 13.8% to $19.15 per share in trading shortly after its earnings report was released.

Urban Outfitters:

Beat earnings estimates. The company reported earnings of 44 cents per share, soaring past the Zacks Consensus Estimate of 37 cents per share. Net income was $50 million for the quarter.

Beat revenues estimates. The company saw revenues of $873 million, topping our consensus estimate of $863.87 million but declining 2% year-over-year.

Comparable Retail segment net sales, which includes Urban’s comparable direct-to-consumer channel, decreased 4.9% during Q2. Breaking it down by division, comps increased 2.9% at Free People, but decreased 4% at Anthropologie and 7.9% at Urban Outfitters.

The company said the decline in comps was due to negative retail store sales, which was partially offset by continued sales growth in our direct-to-consumer channel.

"While we are disappointed in our second quarter performance, we have a number of initiatives underway including: speed to customer, international growth, wholesale expansion and digital investments,” said Richard A. Hayne, Chief Executive Officer. “We believe these initiatives combined with encouraging fashion apparel trends could lead to improved topline performance in future quarters,” finished Mr. Hayne.

Urban Outfitters, Inc. operates two business segments consisting of a lifestyle-oriented general merchandise retailing segment and a wholesale apparel business. The retailing segment operates through retail stores and direct response, including a catalog and two web sites. The company's wholesale business designs and markets young women's casual wear which it provides to the company's retail operations and sells to specialty retailers worldwide.