(Bloomberg) -- Apparel retailer Urban Outfitters Inc. reported first-quarter sales that beat Wall Street’s estimates, with the company’s Anthropologie and Free People brands driving momentum. 

Comparable sales — a key gauge of retail performance — rose 4.6% in the company’s retail segment, outpacing the average estimate from analysts. Revenue rose 7.8% from a year earlier to $1.2 billion, in line with estimates. 

The Free People and Anthropologie brands, both of which have gained prominence on social media in recent years, posted higher-than-expected sales in the fiscal quarter ended April 30. Free People’s athleisure brand, FP Movement, in particular helped drive growth. Those brands’ performance offset weakness at the namesake Urban Outfitters brand, where sales declined 12%. 

Urban Outfitters shares rose 4.8% at 6:24 p.m. in New York in extended trading, paring some of an earlier gain during executives’ call with analysts. The stock has gained 16% so far this year through Tuesday’s close, outperforming the 12% advance of the Nasdaq Composite Index. 

The Urban Outfitters brand, which brought on a new leadership team in North America in February, is clearing out slower-moving inventory with discounts in the current quarter, according to Chief Operating Officer Frank Conforti, which is expected to impact profitability. 

The company is planning to open around 57 new stores in the next fiscal year and close about 21 locations. Of these, 25 will be branded FP Movement, while Free People and Anthropologie will get 13 new locations each. 

(Adds COO comment from from earnings call.)

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