Earnings Review: Why Were Urban Outfitters’ Results Impressive?

-18.92%
Downside
43.42
Market
35.20
Trefis
URBN: Urban Outfitters logo
URBN
Urban Outfitters

  • Urban Outfitters’ shares jumped almost 15% as its results came in ahead of the market expectations
  • Strong growth at Free People, the acquisition of Vetri and a surge in wholesale revenues helped the retailer post a modest revenue growth of 3.2%
  • Wholesale revenues were driven by expansion into 200 new specialty and department stores
  • Free People revenues were driven by the presence of 11 new retail outlets

Urban Outfitters earnings review part 1

  • While revenues grew moderately, operating income fell 5% due to increase SG&A expenses, which may be attributed to higher online-related expenses
  • However, a fall in share count, thanks to buybacks, kept EPS stable at $0.25

Urban Outfitters earnings review second part

  • For the full year, we expect revenues, EBITDA and EPS to grow in low-single digits, backed by continued expansion, growth in Vetri revenues, and fewer promotional activities owing to better merchandise
Relevant Articles
  1. Up 52% YTD, Where Is Urban Outfitters Stock Headed?
  2. Urban Outfitters Stock To Likely See Little Movement Post Q2
  3. Urban Outfitters’ Stock To Likely See Little Movement Past Q1
  4. What’s Happening With Urban Outfitters’ Stock?
  5. Will Urban Outfitters Stock Move Lower Post Fiscal Q2 Results?
  6. What To Watch For Urban Outfitters Stock Past Earnings?

Urban Outfitters earnings future growth

Have more questions about Urban Outfitters? See the links below:

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Urban Outfitters
Interactive Institutional Research (Powered by Trefis):

Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap |More Trefis Research