Teen apparel retailer Urban Outfitters Inc said fewer discounts helped gross margins in the second quarter and reported a higher-than-expected profit.

Urban Outfitters, whose shares were up 6 percent in extended trading on Monday, has been faring better than rivals Abercrombie & Fitch Co and Aeropostale Inc due to its attractive pricing and fresher styles.

Analysts say the company's trendy and fashionable merchandise has helped it capture market share even in a weak consumer environment where mall traffic remains erratic and unpredictable.

Urban Outfitters reported gross margins of 39.3 percent in the quarter ended July, up from 37.6 percent a year earlier.

Net income rose to $76.4 million, or 51 cents per share, from $61.3 million, or 42 cents per share, a year earlier.

Revenue rose 12 percent to $758.5 million.

Analysts on an average were expecting second-quarter earnings of 48 cents per share on revenue of $768.1 million.

The Philadelphia-based company's shares were closed at $39.92 on the Nasdaq on Monday.