Urban Outfitters' Free People brand same-store sales beat estimates

Apparel retailer Urban Outfitters Inc reported better-than-expected sales at established stores for its bohemian-inspired Free People brand.

Shares of the company rose 5.7 percent to $29.76 in extended trading on Monday.

Teen apparel retailers are being quicker in reacting to fashion trends and have seen sales improve, indicating that they may be winning back young shoppers who were flocking to fast-fashion companies such as Inditex's Zara and H&M.

Urban Outfitters said sales of the Free People brand at established stores rose 2 percent in the fourth quarter ended Jan. 31. Analysts had expected a rise of 0.6 percent, according to research firm Consensus Metrix.

Total sales of the brand rose nearly 17 percent to $178.5 million.

The company's net income fell to $72.9 million from $80.3 million, a year earlier. On a per share basis earnings rose to 61 cents from 60 cents, due to fewer shares outstanding.

Net sales rose 0.2 percent to $1.01 billion, the company had reported on Feb. 9. Analysts on average had expected revenue of $1.02 billion.