The 10-second takeaway
For the quarter ended April 30 (Q1), Urban Outfitters missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share didn't change.
Margins shrank across the board.
Urban Outfitters logged revenue of $568.9 million. The 25 analysts polled by S&P Capital IQ predicted sales of $579.7 million on the same basis. GAAP reported sales were 8.6% higher than the prior-year quarter's $524.0 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 $0.23. The 30 earnings estimates compiled by S&P Capital IQ averaged $0.20 per share. GAAP EPS of $0.23 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 35.6%, 130 basis points worse than the prior-year quarter. Operating margin was 9.3%, 190 basis points worse than the prior-year quarter. Net margin was 6.0%, 140 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $677.9 million. On the bottom line, the average EPS estimate is $0.33.
Next year's average estimate for revenue is $2.77 billion. The average EPS estimate is $1.47.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 627 members out of 735 rating the stock outperform, and 108 members rating it underperform. Among 228 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 199 give Urban Outfitters a green thumbs-up, and 29 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Urban Outfitters is outperform, with an average price target of $31.13.
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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. 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.