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Urban Outfitters (URBN) Q2 Earnings Coming Up: What to Expect
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Urban Outfitters, Inc. (URBN - Free Report) is likely to report strong top and bottom-line numbers when it releases second-quarter fiscal 2024 results on Aug 22, after market close. The top-line estimate for the quarter currently stands at $1,249 million, indicating a 5.5% rise from the prior-year period’s level.
The Zacks Consensus Estimate for earnings is pegged at 89 cents per share, indicating growth of 39.1% year over year. The consensus mark has increased a penny over the past seven days.
The company delivered an average earnings surprise of 12.2% in the trailing four quarters.
Factors to Note
Urban Outfitters’ fiscal second-quarter performance is likely to have benefited from its strategic efforts, including technological advancements, store rationalization and merchandising improvements. The company has been strengthening its direct-to-consumer business, enhancing productivity in the existing channels, expanding product assortment and optimizing inventory level. URBN has also been strengthening its presence with the rapid expansion of digital activities. Its FP Movement initiative to boost growth at the Free People brand is also promising. Nuuly, its subscription-based rental service, has also been contributing.
All these factors are expected to favor Urban Outfitters’ to-be-reported quarterly results. On its last earnings call, management cited that it is impressed with the sturdy overall consumer demand and projected the total company sales to grow in the mid-single digits. This growth will be backed by a mid-single-digit increase in the Retail segment’s comp sales and a high double-digit rise in Nuuly segment’s sales year over year.
The company believes that the Retail segment comparable sales in the second quarter will be very similar to the first quarter. URBN anticipated the gross margin rate for the to-be-reported quarter to improve nearly 300 basis points year over year, buoyed by increased initial product margins from lower inbound freight costs and reduced merchandise markdowns. We expect Nuuly unit to register year-over-year growth of nearly 80% and the adjusted gross margin to increase more than 300 basis points in the fiscal second quarter.
On the flip side, a tough operating backdrop, including inflationary pressures and currency headwinds, is likely to have acted as a headwind. Management had earlier stated that foreign currency is likely to hurt sales by roughly 100 basis points. Urban Outfitters has also been grappling with higher selling, general & administrative expenses and lower sales across its wholesale unit for a while now. We expect the company’s wholesale segment to witness a fall of 37.3% year over year in the quarter under review.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Urban Outfitters this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is precisely the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
The company is expected to register bottom-line growth when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of 15 cents suggests an increase of 275% from the year-ago quarter.
American Eagle Outfitters’ top line is anticipated to fall year over year. The consensus mark for revenues is pegged at $1.19 billion, indicating a drop of 0.9% from the figure reported in the year-ago quarter.
Five Below (FIVE - Free Report) currently has an Earnings ESP of +1.21% and a Zacks Rank of 2. FIVE is likely to register top-line improvement when it reports second-quarter fiscal 2023 numbers.
The Zacks Consensus Estimate for Five Below’s quarterly revenues is pegged at $760.2 million, calling for growth of 13.6% from the prior-year quarter’s reported figure. The consensus mark for the quarterly earnings per share of 83 cents suggests a 12.2% increase from the figure reported in the year-ago quarter. FIVE has a trailing four-quarter earnings surprise of 27.9%, on average.
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +1.03% and a Zacks Rank of 3. The company is expected to register a bottom-line decrease when it reports first-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly earnings per share of $3.39 suggests a decline of 17.1% from the year-ago quarter.
Casey's top line is anticipated to fall year over year. The consensus mark for revenues is pegged at $3.85 billion, indicating a drop of 13.5% from the figure reported in the year-ago quarter. CASY has a trailing four-quarter earnings surprise of 7.5%, on average.
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Urban Outfitters (URBN) Q2 Earnings Coming Up: What to Expect
Urban Outfitters, Inc. (URBN - Free Report) is likely to report strong top and bottom-line numbers when it releases second-quarter fiscal 2024 results on Aug 22, after market close. The top-line estimate for the quarter currently stands at $1,249 million, indicating a 5.5% rise from the prior-year period’s level.
The Zacks Consensus Estimate for earnings is pegged at 89 cents per share, indicating growth of 39.1% year over year. The consensus mark has increased a penny over the past seven days.
The company delivered an average earnings surprise of 12.2% in the trailing four quarters.
Factors to Note
Urban Outfitters’ fiscal second-quarter performance is likely to have benefited from its strategic efforts, including technological advancements, store rationalization and merchandising improvements. The company has been strengthening its direct-to-consumer business, enhancing productivity in the existing channels, expanding product assortment and optimizing inventory level. URBN has also been strengthening its presence with the rapid expansion of digital activities. Its FP Movement initiative to boost growth at the Free People brand is also promising. Nuuly, its subscription-based rental service, has also been contributing.
All these factors are expected to favor Urban Outfitters’ to-be-reported quarterly results. On its last earnings call, management cited that it is impressed with the sturdy overall consumer demand and projected the total company sales to grow in the mid-single digits. This growth will be backed by a mid-single-digit increase in the Retail segment’s comp sales and a high double-digit rise in Nuuly segment’s sales year over year.
The company believes that the Retail segment comparable sales in the second quarter will be very similar to the first quarter. URBN anticipated the gross margin rate for the to-be-reported quarter to improve nearly 300 basis points year over year, buoyed by increased initial product margins from lower inbound freight costs and reduced merchandise markdowns. We expect Nuuly unit to register year-over-year growth of nearly 80% and the adjusted gross margin to increase more than 300 basis points in the fiscal second quarter.
On the flip side, a tough operating backdrop, including inflationary pressures and currency headwinds, is likely to have acted as a headwind. Management had earlier stated that foreign currency is likely to hurt sales by roughly 100 basis points. Urban Outfitters has also been grappling with higher selling, general & administrative expenses and lower sales across its wholesale unit for a while now. We expect the company’s wholesale segment to witness a fall of 37.3% year over year in the quarter under review.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Urban Outfitters this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is precisely the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Urban Outfitters, Inc. Price and EPS Surprise
Urban Outfitters, Inc. price-eps-surprise | Urban Outfitters, Inc. Quote
Urban Outfitters currently has an Earnings ESP of +1.13% and a Zacks Rank of 3.
More Stocks With The Favorable Combination
Here are some other companies, which according to our model, have the right combination of elements to beat on earnings this season:
American Eagle Outfitters (AEO - Free Report) currently has an Earnings ESP of +8.52% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is expected to register bottom-line growth when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of 15 cents suggests an increase of 275% from the year-ago quarter.
American Eagle Outfitters’ top line is anticipated to fall year over year. The consensus mark for revenues is pegged at $1.19 billion, indicating a drop of 0.9% from the figure reported in the year-ago quarter.
Five Below (FIVE - Free Report) currently has an Earnings ESP of +1.21% and a Zacks Rank of 2. FIVE is likely to register top-line improvement when it reports second-quarter fiscal 2023 numbers.
The Zacks Consensus Estimate for Five Below’s quarterly revenues is pegged at $760.2 million, calling for growth of 13.6% from the prior-year quarter’s reported figure. The consensus mark for the quarterly earnings per share of 83 cents suggests a 12.2% increase from the figure reported in the year-ago quarter. FIVE has a trailing four-quarter earnings surprise of 27.9%, on average.
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +1.03% and a Zacks Rank of 3. The company is expected to register a bottom-line decrease when it reports first-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly earnings per share of $3.39 suggests a decline of 17.1% from the year-ago quarter.
Casey's top line is anticipated to fall year over year. The consensus mark for revenues is pegged at $3.85 billion, indicating a drop of 13.5% from the figure reported in the year-ago quarter. CASY has a trailing four-quarter earnings surprise of 7.5%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.