Urban Outfitters Inc posted a bigger-than-expected quarterly profit on lower costs and strong sales across its brands, sending its shares up 4 percent after the bell.

The company, which owns the Urban Outfitters, Anthropologie and Free People chains, has been hot favorite with young shoppers for its fresh designs, and despite some concerns of a new slowdown in consumer spending, it saw sales rise 20 percent during the quarter.

Apparel companies, including bellweathers Gap Inc and Abercrombie & Fitch Co report results this week, and some analysts fear that higher-than-usual discounting right before the back-to-school season could bode ill for the retailers.

However, Urban Outfitters discounted less during the quarter and saw margins rise 173 basis points as expenses fell 52 basis points.

Second-quarter profit at Urban Outfitters rose 46 percent to $72 million, or 42 cents a share, topping estimates of 39 cents a share, according to Thomson Reuters I/B/E/S.

The Philadelphia-based company said same-store sales rose 7 percent during the quarter, led by a 24 percent rise at its Free People chain.

Urban Outfitters shares, which have gained 16 percent since they touched a 52-week low of $27.05 in August last year, were trading at $32.50 after the bell. They closed at $31.36 Monday on Nasdaq.

(Reporting by Nivedita Bhattacharjee in Bangalore; Editing by Anne Pallivathuckal)