Retail
Is This the Turnaround Urban Outfitters Has Been Waiting For?
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Urban Outfitters, Inc. (NASDAQ: URBN) 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.
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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