Clothing and accessories retailer Urban Outfitters (NASDAQ:URBN) will be reporting results tomorrow afternoon. Here’s what to look for.
Urban Outfitters beat analysts’ revenue expectations by 1.8% last quarter, reporting revenues of $1.20 billion, up 7.8% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ earnings estimates and a decent beat of analysts’ gross margin 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 5.2% year on year to $1.34 billion, slowing from the 7.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.00 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Urban Outfitters has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.3% on average.
Looking at Urban Outfitters’s peers in the apparel and footwear retail segment, only Boot Barn has reported results so far. It beat analysts’ revenue estimates by 1.6%, delivering year-on-year sales growth of 10.3%. The stock traded up 13.7% on the results.
Read our full analysis of Boot Barn’s earnings results here.Investors in the apparel and footwear retail segment have had steady hands going into earnings, with share prices flat over the last month. Urban Outfitters is down 9.8% during the same time and is heading into earnings with an average analyst price target of $44.9 (compared to the current share price of $41.65).
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