Is Urban Outfitters the One Retailer Crushing This COVID-19 Quarter?

When Urban Outfitters Inc. (NASDAQ: URBN) 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.

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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