Urban Outfitters Increases Sales but Misses Estimates on Earnings

Urban Outfitters (Nasdaq: URBN  ) reported earnings on March 11. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 31 (Q4), Urban Outfitters beat slightly on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly. GAAP earnings per share increased significantly.

Gross margins contracted, operating margins grew, net margins grew.

Revenue details
Urban Outfitters booked revenue of $856.8 million. The 27 analysts polled by S&P Capital IQ expected revenue of $841.5 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $730.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.56. The 32 earnings estimates compiled by S&P Capital IQ anticipated $0.57 per share. GAAP EPS of $0.56 for Q4 were 107% higher than the prior-year quarter's $0.27 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 36.6%, much worse than the prior-year quarter. Operating margin was 15.4%, 660 basis points better than the prior-year quarter. Net margin was 9.6%, 420 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $651.4 million. On the bottom line, the average EPS estimate is $0.30.

Next year's average estimate for revenue is $3.15 billion.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 619 members out of 721 rating the stock outperform, and 102 members rating it underperform. Among 215 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 191 give Urban Outfitters a green thumbs-up, and 24 give it a red thumbs-down.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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