Is Urban Outfitters the One Retailer Crushing This COVID-19 Quarter?
Urban Outfitters stock rallied early Wednesday after the retailer posted better than expected quarterly results late on Tuesday.
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When Urban Outfitters Inc. (NASDAQ: URBN | URBN Price Prediction) reported fiscal second-quarter financial results after markets closed Tuesday, the retailer said that it had $0.35 in earnings per share (EPS) and $803.27 million in revenue. The consensus estimates had called for a net loss of $0.40 per share and $672 million in revenue, and the same period of last year reportedly had $0.61 per share and $962.33 million.
During the latest quarter, comparable net sales decreased 13%, driven by negative retail store sales, due to stores being closed for part of the quarter and lower store productivity once opened, partially offset by strong double-digit growth in the digital channel.
By brand, comparable retail segment net sales increased 11% at Free People and decreased 25% at the Anthropologie Group and 8% at Urban Outfitters. Wholesale segment net sales decreased by 51% and total retail segment net sales decreased 14%.
In terms of its segments, the firm reported:
- Anthropologie Group net sales decreased by 25.1% year over year to $295.12 million.
- Urban Outfitters net sales decreased by 8.8% to $323.9 million.
- Free People net sales decreased by 13.6% to $178.0 million.
- Menus and Venues net sales decreased by 77.9% to $1.56 million.
- Nuuly net sales came in at $4.67 million.
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Cash, cash equivalents and marketable securities totaled $663.4 million at the end of the quarter, up from $433.3 million at the end of the previous fiscal year.
In the report, the retailer offered no guidance for the current quarter, citing uncertainty regarding the COVID-19 crisis. However, consensus estimates call for $0.15 in EPS and $868.05 million in revenue for the fiscal third quarter.
Urban Outfitters stock traded up 28% to $26.66 on Wednesday, in a 52-week range of $12.28 to $31.41. The consensus price target is $19.17.
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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.
