Is This the Turnaround Urban Outfitters Has Been Waiting For?
Urban Outfitters reported its fiscal second quarter financial results after the markets closed on Tuesday. The retailer said that it had $0.61 in earnings per share (EPS) and $962.33 million in revenue, compared with consensus estimates that called for $0.58…
Urban Outfitters, Inc. (NASDAQ: URBN | URBN Price Prediction) reported fiscal second-quarter financial results after markets closed Tuesday. The retailer said that it had $0.61 in earnings per share (EPS) and $962.33 million in revenue, compared with consensus estimates that called for $0.58 in EPS and $980.61 million in revenue. The same period from last year had $0.84 in EPS and $992.45 million in revenue.
During the quarter, comparable net sales decreased 3%, driven by negative retail store sales, partially offset by growth in the digital channel. By brand, comparable retail segment net sales increased 6% at Free People and decreased 3% at the Anthropologie Group and 5% at Urban Outfitters. Wholesale segment net sales decreased by 8%.
In terms of its segments, the firm reported:
- Anthropologie Group net sales decreased by 1.7% year over year to $394.28 million.
- Urban Outfitters net sales decreased by 6.4% to $355.05 million.
- Free People net sales decreased by less than 1% to $205.94 million.
- Food and Beverage net sales increased by 29.9% to $7.06 million.
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In the report, the retailer did not offer any guidance for the coming quarter. However, consensus estimates are calling for $0.65 in EPS and $994.68 million in revenue for the fiscal third quarter.
Richard A. Hayne, CEO, commented:
I am pleased to report that customer reaction to our early fall apparel assortments have improved significantly from our second quarter results. Third quarter-to-date ‘comp’ sales are positive at all three brands.
Shares of Urban Outfitters closed at $20.91, with a 52-week range of $19.63 to $52.50. The consensus analyst price target is $29.44. Following the announcement, the stock was up about 4% at $21.74 in the after-hours session.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
