Clothing and accessories retailer Urban Outfitters (NASDAQ:URBN) will be reporting results tomorrow after the bell. Here’s what you need to know.
Urban Outfitters beat analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $1.36 billion, up 6.3% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ gross margin estimates and a solid beat of analysts’ EBITDA estimates.
Is Urban Outfitters a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Urban Outfitters’s revenue to grow 9.2% year on year to $1.63 billion, improving from the 8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.95 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Urban Outfitters has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Urban Outfitters’s peers in the apparel and footwear retail segment, only Boot Barn has reported results so far. It met analysts’ revenue estimates, delivering year-on-year sales growth of 16.9%. The stock was down 7.9% on the results.
Read our full analysis of Boot Barn’s earnings results here.Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the apparel and footwear retail stocks have shown solid performance, the group has generally underpeformed, with share prices down 8% on average over the last month. Urban Outfitters is down 1.3% during the same time and is heading into earnings with an average analyst price target of $57.08 (compared to the current share price of $54).
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