Urban Outfitters, Inc. (URBN) reminded everyone Tuesday that retail isn't dead—it just needs the right formula. The lifestyle retailer's stock surged over 15% in after-hours trading following a third-quarter earnings report that had analysts nodding in approval.

The Numbers That Matter

Urban Outfitters reported quarterly earnings of $1.28 per share, sailing past the Street estimate of $1.18 by a solid 8.11%. But the real story was revenue: $1.53 billion against expectations of $1.47 billion. That's not just a beat—it's a meaningful jump from the $1.36 billion the company posted in the same quarter last year.

Breaking Down the Performance

The company delivered growth across virtually every segment. Total retail segment sales climbed 9.6%, with comparable retail sales up 8%. When you dig into the individual brands, the strength becomes even clearer: Urban Outfitters stores saw comparable sales surge 12.5%, Anthropologie posted a 7.6% increase, and Free People added 4.1%.

Perhaps the most impressive performance came from the subscription segment, which exploded with 48.7% sales growth. The driver? A 42.2% increase in average active subscribers compared to last year. That's the kind of growth that gets investors excited about recurring revenue streams.

Meanwhile, the wholesale segment wasn't sitting idle either, growing 7.6% thanks to an 8.4% bump in Free People wholesale sales, primarily from increased business with specialty customers.

"We are pleased to report record revenues, profits, and earnings per share for the quarter," said CEO Richard A. Hayne. He noted that "trends observed last quarter have remained consistent with broad-based comparable sales growth and robust results in the Retail, Subscription and Wholesale segments."

Market Reaction

Investors clearly liked what they saw. URBN stock jumped 15.06% to $78.60 in extended trading following the earnings release, a solid vote of confidence in the company's momentum heading into the critical holiday season.