Urban Outfitters Jumping Pre-Market (URBN)

Shares of Urban Outfitters, Inc. URBN are up 4.6% in pre-market trading, after the clothing retailer reported better than expected earnings yesterday after the bell. Urban Outfitters said net income rose to 43 cents per share, on revenues of $574 million. Analysts expected 42 cents per share. Urban Outfitters' reported that its gross margins dropped by 39 basis points in the quarter, mainly due to shipping costs, and store opening costs. Brian Sozzi, an analyst at Wall Street Strategies said that this was Urban Outfitters first drop in gross margins the July 2009 quarter. "Though it's easy to appreciate the future growth portfolio of the Urban Outfitters brand portfolio globally, near-term considerations may trigger further downward EPS revisions by consensus, therefore pressuring the stock," he wrote in a research report. At last check, shares of URBN were up $1.61 to $34.35, a gain of nearly 5%.