Urban Outfitters 1Q profit up on fewer markdowns

The clothing retailer reported net income jumped to $42.6 million, or 25 cents per share, compared with $29.4 million, or 17 cents per share, in the previous year.

Analysts expected earnings of 23 cents per share, according to a Thomson Financial survey.

For the period ended April 30, sales grew 25 percent to $394.3 million from $314.5 million.

The results topped Wall Street's estimate of $392.2 million.

Combined, same-store sales for its Anthropologie, Free People and Urban Outfitters brands increased 10 percent during the quarter.

Same-store sales, or sales at stores open at least a year, is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.

Urban Outfitters operated 129 Urban retail stores in the U.S., Canada and Europe, 109 Anthropologie stores, 18 Free People stores and one Terrain garden center as of April 30.