What Analysts Are Saying After Urban Outfitters Crushed Earnings

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The retail industry has been in turmoil this year, and as more companies are reporting, it doesn’t seem to be getting any better. However, Urban Outfitters Inc. (NASDAQ: URBN) saw an incredible response following its fiscal second-quarter financial results. Most expected this struggling retailer to tank on this earnings report, but it surprised analysts and investors, bouncing off a multiyear low.

24/7 Wall St. has included some highlights from the earnings report, as well as what a few analysts are saying after the fact.

The retailer said that it had $0.44 in earnings per share (EPS) and $872.9 million in revenue, compared with consensus estimates from Thomson Reuters of $0.37 in EPS and revenue of $861.76 million. The same period of last year reportedly had EPS of $0.66 and $890.57 million in revenue.

Comparable retail segment net sales, which includes the comparable direct-to-consumer channel, decreased 4.9%.

By brand, comparable retail segment net sales increased 2.9% at Free People, but decreased 4.0% at the Anthropologie Group and 7.9% at Urban Outfitters. The decline in comparable retail segment net sales was due to negative retail store sales, which was partially offset by continued sales growth in its direct-to-consumer channel.

Here’s what analysts had to say in the aftermath:

  • Merrill Lynch reiterated a Buy rating and raised its price target to $24 from $22.
  • KeyCorp has a Buy rating with a $26 price target.
  • Jefferies has a Buy rating and raised its price target to $25 from $23.
  • Goldman Sachs has a Sell rating but raised its price target from $16 to $18.
  • Robert Baird has a Buy rating with a $22 price target.
  • RBC has a Sector Perform rating and raised its price target to $21 from $17.
  • Telsey Advisory Group has a Market Perform rating and raised its target from $20 to $22.
  • Oppenheimer reiterated a Hold rating.

Shares of Urban Outfitters were last seen up about 20% at $20.22 on Wednesday, with a consensus analyst price target of $19.77 and a 52-week range of $16.68 to $21.31.