The 10-second takeaway
For the quarter ended July 31 (Q2), Urban Outfitters met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share increased significantly.
Margins dropped across the board.
Urban Outfitters logged revenue of $676.3 million. The 29 analysts polled by S&P Capital IQ anticipated a top line of $671.4 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $609.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.42. The 31 earnings estimates compiled by S&P Capital IQ anticipated $0.33 per share. GAAP EPS of $0.42 for Q2 were 20% higher than the prior-year quarter's $0.35 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 37.6%, 30 basis points worse than the prior-year quarter. Operating margin was 14.2%, 20 basis points worse than the prior-year quarter. Net margin was 9.1%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $689.7 million. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $2.75 billion. The average EPS estimate is $1.48.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 628 members out of 733 rating the stock outperform, and 105 members rating it underperform. Among 216 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 188 give Urban Outfitters a green thumbs-up, and 28 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Urban Outfitters is hold, with an average price target of $30.95.
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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 positions in the stocks mentioned above. 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.