Can Urban Outfitters Turn Itself Around With Q4 Results?
Urban Outfitters is scheduled to release its fiscal fourth-quarter financial results after the markets close on Tuesday.
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Urban Outfitters Inc. (NASDAQ: URBN | URBN Price Prediction) is scheduled to release its fiscal fourth-quarter financial results after the markets close on Tuesday. The consensus estimates call for $0.79 in earnings per share (EPS) and $1.14 billion in revenue. The same period of last year reportedly had $0.62 in EPS and $1.09 billion in revenue.
In February, net sales for the three months ended January 31, 2019, increased 3.7% year over year to a record $1.13 billion. Comparable Retail segment net sales increased 3.0%, driven by double-digit growth in the digital channel, partially offset by negative retail store sales. By brand, comparable Retail segment net sales increased 4% at Free People, 4% at Urban Outfitters and 2% at the Anthropologie Group. Wholesale segment net sales increased 3%.
For the year, total net sales increased to $4.0 billion, or 9.3% over the prior year. Comparable Retail segment net sales increased 8.0%, driven by double-digit growth in the digital channel and positive retail store sales. Wholesale segment net sales increased 10%.
CEO Richard A. Hayne commented:
I’m pleased to report record fourth quarter revenues and the sixth consecutive quarter all brands delivered positive Retail segment ‘comps’. Positive ‘comps’ were driven by double-digit growth in digital channel revenues.
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Excluding Tuesday’s move, Urban Outfitters had underperformed the broad markets, with its stock down about 9% year to date. In the past 52 weeks, the stock was down 14%.
A few analysts weighed in on Urban Outfitters ahead of the report:
- B. Riley has a Buy rating with a $40 price target.
- Deutsche Bank has a Hold rating with a $33 price target.
- Telsey Advisory Group’s Market Perform rating comes with a $35 target.
- Jefferies has a Buy rating with a $58 price target.
- Wolfe Research has an Outperform rating and a $42 target.
- Morgan Stanley has an Overweight rating.
Shares of Urban Outfitters were last seen up about 1% at $30.61 on Tuesday, in a 52-week range of $29.84 to $52.50. The consensus price target is $39.38.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
