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Key Takeaways

• Urban Outfitters shares jumped more than 20% Thursday morning after the retailer reported strong first-quarter results.

• Revenue and profit each topped estimates, and comparable sales grew more than expected across the company's three biggest brands.

• JPMorgan analysts upgraded the stock after the report, and lifted their price target by $15.

Shares of Urban Outfitters (URBN) surged to a record high shortly after markets opened Thursday following the retailer's first-quarter results that came in handily above estimates.

First-quarter sales rose 10.7% year-over-year to $1.33 billion, while earnings per share came in at $1.16, well above the $0.81 analyst consensus compiled by Visible Alpha.

The retailer's comparable store sales rose by 4.8% from the same time a year ago, better than the 3.2% growth analysts had forecast. Comparable sales grew at each of the company's brands, rising 2.1% at Urban Outfitters, 6.9% at Anthropologie, and 3.1% at Free People. All three were better than expected, as analysts had forecast a 1.4% drop in comparable sales at Urban Outfitters stores.

“Our success was driven by positive sales growth and improved profitability across all brands and segments," CEO Richard Hayne said. "We believe these results demonstrate the strength of our brands and the effectiveness of our strategy, giving us confidence in URBN’s continued success."

Following the report, JPMorgan analysts upgraded Urban Outfitters stock to "overweight," and lifted their price target to $78 from $63 previously. The analysts noted that it was the first quarter in three years that comparable store sales rose across all three of its largest brands.

Shares opened at a record high of over $71.

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