What to Look for in Urban Outfitters’ Earnings

November 21, 2016 by Chris Lange

Urban Outfitters Inc. (NASDAQ: URBN) is scheduled to report fiscal third-quarter financial results after markets close on Tuesday. The consensus estimates are calling for $0.44 in earnings per share (EPS) and $869.07 million in revenue. The same period from last year had $0.42 in EPS and $825.26 million in revenue.

Just recently this company delivered record second quarter sales and earnings per share. These results were driven by a positive retail segment ‘comp’ and substantial improvement in merchandise margins. At this time, the stock jumped more than 15% and tacked on a 52-week high, just for good measure.

The increase at the top line for Urban Outfitters was also modest, but same-store sales and earnings were strong in its most recently reported quarter. The company owns three brands: Urban Outfitters, Anthropologie and Free People. Revenue across all three grew from $867 million to $890 million. Same-store sales for the entire operation were up 1%, but they rose by 5% at the flagship brand.

Although other retailers may be struggling heading into the fourth-quarter, Urban Outfitters has been cruising.

A few analysts weighed in on Urban Outfitters ahead of the report:

  • Wunderlich has a Buy rating with a $40 price target.
  • Morgan Stanley has an Equal Weight rating with a $39 price target.
  • Citigroup has a Buy rating.
  • Jefferies has a Buy rating with a $45 price target.
  • MKM reiterated a Neutral rating with a $36 price target.
  • Wells Fargo reiterated a Hold rating with a $33 price target.
  • Baird has an Outperform rating with a $38 price target.

So far in 2016, Urban Outfitters has vastly outperformed the broad markets with the stock up 64% in this time.

Shares of Urban Outfitters were last trading at $37.41, with a consensus analyst price target of $37.36 and a 52-week trading range of $20.06 to $40.80.

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