Shares of Urban Outfitters, Inc. (NASDAQ:URBN) were moving higher today as expectations for the company's upcoming third-quarter earnings report rose after a number of retail stocks posted better-than-expected earnings reports.
With its focus on hipsters and other urban millennials through brands such as its namesake Anthropologie and Free People, the company does not have a close peer in the public markets, but it still benefited as apparel retail stocks were surging across the board today due to strong results from Gap, Abercrombie & Fitch, Foot Locker, Ross Stores, Hibbett Sports, Shoe Carnival, and others. The reports seem to buck the conventional wisdom that mall-based apparel retail is dying as companies have adapted to changing dynamics and comparable sales are improving.
The news also makes investors more optimistic ahead of the all-important holiday season that's just around the corner.
Urban Outfitters is set to report third-quarter earnings Monday after the market closes. Analysts are expecting revenue to fall 0.2% to $861 million and earnings per share to decline from $0.40 to $0.33.
Like other chains, Urban Outfitters has struggled to adapt to the rise of e-commerce, and its own CEO has said simply that there are too many clothing stores in the country, calling it a bubble.
However, the stock has been surging since its second-quarter report overcame a low bar as it is up 41% over the last three months. Given the low expectations coming into this round and the strong results from its peers, Urban could report to the upside once again come Monday.