Multinational lifestyle retailer Urban Outfitters, Inc. (URBN) reported outstanding second-quarter results aided by strong digital channel sales. Shares dipped 4.9% in the extended trading session on August 24.
Urban Outfitters reported earnings of $1.28 per share, up a whopping 266% year-over-year, and significantly outpacing the Street’s estimate of $0.78 per share.
Net sales grew 45% compared to the year-ago period to $1.16 billion and also surpassed analysts’ estimates of $1.08 billion. The company’s prior year sales were affected by COVID-19 related store closures.
Compared to the prior-year quarter, both retail and wholesale segment revenue grew approximately 44%. (See Urban Outfitters stock charts on TipRanks)
Impressed with the solid quarterly results, Richard A. Hayne, the company’s CEO, said, “We’re pleased to report record second-quarter sales and earnings driven by extraordinary performance at all three brands… Congratulations to all Brand, Creative and Shared teams for the exceptional execution that led to a 110% increase in earnings per share over fiscal 2020.”
Recently, J.P. Morgan analyst Matthew Boss maintained a Hold rating on the stock while lifting the price target to $39 (4.3% downside potential) from $38.
Boss has an overall optimistic view for department store and specialty softline sector and expected “broad-based beats” in the second-quarter results.
The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 4 Buys and 7 Holds. The average Urban Outfitters price target of $41.89 implies 2.9% upside potential to current levels. Shares have gained 95.8% over the past year.
Also, TipRanks data shows that financial blogger opinions are 88% Bullish on URBN, compared to a sector average of 73%.
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