Clothing and accessories retailer Urban Outfitters (NASDAQ:URBN) will be reporting earnings tomorrow after the bell. Here’s what to look for.
Urban Outfitters beat analysts’ revenue expectations by 1% last quarter, reporting revenues of $1.35 billion, up 6.3% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ profit 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 4.5% year on year to $1.34 billion, slowing from the 9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.87 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 only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.4% on average.
Looking at Urban Outfitters’s peers in the apparel and footwear retail segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Gap delivered year-on-year revenue growth of 1.6%, beating analysts’ expectations by 0.6%, and Boot Barn reported revenues up 13.7%, in line with consensus estimates. Gap traded up 12.7% following the results while Boot Barn was down 19.9%.
Read our full analysis of Gap’s results here and Boot Barn’s results here.
There has been positive sentiment among investors in the apparel and footwear retail segment, with share prices up 4.1% on average over the last month. Urban Outfitters is up 2.2% during the same time and is heading into earnings with an average analyst price target of $41.35 (compared to the current share price of $37.62).
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