Urban Outfitters Dives Lower on Missed Earnings

Urban Outfitters, Inc. (NASDAQ: URBN) reported fiscal first-quarter financial results after markets closed Tuesday. The company said that it had $0.10 in earnings per share (EPS) and $761 million in revenue, versus consensus estimates from Thomson Reuters that called for $0.16 in EPS and $769.81 million in revenue. The same period from last year had $0.25 in EPS and $762.58 million in revenue.

Comparable retail segment net sales, which include the comparable direct-to-consumer channel, decreased 3.1%. By brand, comparable retail segment net sales increased 1.5% at Free People but decreased 3.1% at Urban Outfitters and 4.4% at the Anthropologie Group. Comparable retail segment sales were driven by strong, double-digit growth in the direct-to-consumer channel, both of which were offset by negative retail store comparable net sales. Wholesale segment net sales increased 14%.

In terms of its business segments, the company reported:

  • Urban Outfitters had revenues of $284.8 million, down 4.7% year over year.
  • Anthropologie Group had revenues of $311.1 million, down from $314.1 million last year.
  • Free People had revenues of $159.5 million up 10%.
  • Food and Beverage had revenues of $5.84 million up 14.5% from last year.

On the books, cash, cash equivalents, and marketable securities totaled $371.0 million at the end of the quarter, versus $287.7 million in the same period from last year.

Richard A. Hayne, CEO of Urban Outfitters, commented:

During the first quarter we continued to see strong double-digit growth from our direct-to-consumer channel and our wholesale business. We believe we have significant opportunity to continue to grow both of these channels at all of our brands.

Shares of Urban Outfitters closed Tuesday down 2.3% at $20.46, with a consensus analyst price target of $26.63 and a 52-week trading range of $20.24 to $40.80. Following the release of the earnings report, the stock was down 1.8% at $20.09 in the after-hours trading session.