Zacks’ analyst wrote, “Urban Outfitters’ first-quarter 2013 earnings of $0.23 per share beat the Zacks Consensus Estimate of $0.20, and came in line with the prior-year quarter s earnings. Lower shares outstanding as well as top-line growth of 8.6% benefited the bottom line. We observe that gross margin during the quarter contracted 130 basis points to 35.6% due to a rise in occupancy costs and marginally higher merchandise markdowns to sell the slow-moving stock of women’s clothing across all brands. Management now expects second quarter gross margin to be in line with the first quarter, and anticipates improvement in margin in the second half of fiscal 2013. The company is now trying to optimize inventory level, and focusing on increasing customer count through store expansion, online and mobile marketing endeavors and expansion of direct-to-consumer business. Further, the company’s debt-free balance sheet also augurs well for future growth.”
Shares of Urban Outfitters traded down 0.85% during mid-day trading on Wednesday, hitting $27.86. Urban Outfitters has a one year low of $21.47 and a one year high of $33.90. The company has a market cap of $4.034 billion and a P/E ratio of 23.44.
Urban Outfitters last issued its quarterly earnings data on Monday, May 21st. The company reported $0.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.20 by $0.03. The company’s revenue for the quarter was up 8.6% on a year-over-year basis. On average, analysts predict that Urban Outfitters will post $0.41 earnings per share next quarter.
A number of other analysts have also recently weighed in on URBN. Analysts at Brean Murray Carret & Co. reiterated a “sell” rating on shares of Urban Outfitters in a research note to investors on Tuesday. Separately, analysts at Brean Murray reiterated a “sell” rating on shares of Urban Outfitters in a research note to investors on Tuesday. Finally, analysts at Brean Murray reiterated a “sell” rating on shares of Urban Outfitters in a research note to investors on Tuesday.
Urban Outfitters, Inc. (Urban Outfitters) is a lifestyle specialty retail company, which operates under the Urban Outfitters, Anthropologie, Free People, Terrain and BHLDN brands.