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How Urban Outfitters (URBN) is Placed Before Q2 Earnings
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Urban Outfitters, Inc. (URBN - Free Report) is likely to register growth in its top line from the last fiscal year’s quarterly reading when it releases second-quarter fiscal 2023 results on Aug 23, after market close. The Zacks Consensus Estimate for quarterly revenues is currently pegged at $1,183 million, indicating a rise of 1.6% from the prior fiscal year’s quarterly reported figure.
However, the bottom line is likely to decline from the last fiscal year’s quarterly reading. The Zacks Consensus Estimate for quarterly earnings currently stands at 42 cents a share, suggesting a decrease of 47.7% from the earlier fiscal year’s quarterly tally. The consensus mark has declined 4.3% over the past 30 days.
A glance at this specialty lifestyle products retailer’s performance over the trailing four quarters shows that it delivered an earnings surprise of 7.6%, on average.
Factors to Note
Urban Outfitters’ performance for the fiscal second quarter is most likely to have benefited from its strategic efforts, including technological advancements, store rationalization and merchandising improvements. URBN is consistently strengthening its direct-to-consumer business, enhancing productivity in the existing channels, expanding its product assortment and optimizing inventory level.
URBN is also steadily boosting its presence by rapidly expanding its digital activities. Its FP Movement initiative to boost growth under the Free People brand is yielding too. All these tailwinds are expected to have favored Urban Outfitters’ top line during the quarter under review. On its last earnings call, management had projected sales growth in the fiscal second quarter from the year-ago fiscal period’s actuals, with the Retail segment comp sales expected to increase in the low single-digit range and the Wholesale segment sales in the mid-single digits. URBN anticipated a total sales rise in the low single-digit range.
The Zacks Consensus Estimate of $470 million for Anthropologie Group and $462 million for Free People Group suggests growth of 4.2% and 4.8%, respectively, from the corresponding last fiscal year’s quarterly readings. The consensus estimate for Nuuly, its subscription-based rental service for women’s clothes, is pegged at $17.3 million, hinting at a sharp increase from $9.9 million recorded in the year-earlier fiscal quarter. However, the consensus mark of $422 million for Urban Outfitters brand implies a decline of 4.5%.
However, the inflationary pressures from inbound freight costs and raw materials might have hurt profits in the quarter under review. Also, the supply-chain headwinds and higher transportation expenses remain deterrents. In addition, Urban Outfitters has been grappling with higher SG&A expenses for a while now.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Urban Outfitters this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Urban Outfitters has a Zacks Rank #4 (Sell) and an Earnings ESP of -3.31%.
Stocks With Favorable Combination
Here are a few companies worth considering as our model shows that these have the right combination of elements to beat on earnings this season:
Chewy (CHWY - Free Report) currently has an Earnings ESP of +1.03% and a Zacks Rank #1. CHWY is likely to register a bottom-line decrease from the previous fiscal year’s quarterly reading when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly loss per share of 12 cents indicates deterioration from the year-earlier fiscal quarter’s loss of 4 cents.
Chewy's top line is expected to rise from the last fiscal year’s reading. The Zacks Consensus Estimate for quarterly revenues stands at $2.50 billion, which indicates an improvement of 16% from the figure reported in the prior-year fiscal quarter. CHWY has a trailing four-quarter earnings surprise of 4.1%, on average.
Ulta Beauty (ULTA - Free Report) currently has an Earnings ESP of +4.07% and a Zacks Rank #2. ULTA is likely to register a bottom-line improvement year over year when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $4.90 suggests an improvement of 7.5% from the year-ago fiscal quarter’s tally.
Ulta Beauty's top line is expected to rise from the prior fiscal year’s quarterly reading. The Zacks Consensus Estimate for quarterly revenues stands at $2.20 billion, indicating an improvement of 11.7% from the figure reported in the prior-year fiscal quarter. ULTA has a trailing four-quarter earnings surprise of 49.8%, on average.
Dollar General (DG - Free Report) currently has an Earnings ESP of +1.04% and a Zacks Rank of 2. DG is likely to register an increase in the bottom line from the prior fiscal year’s quarterly reading when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has increased a penny over the past 30 days to $2.93 per share. The consensus mark for DG’s earnings per share suggests 8.9% growth from the year-ago fiscal quarter’s reported number.
Dollar General’s top line is expected to have risen from the previous fiscal year’s quarterly tally. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.39 billion, suggesting a rise of 8.6% from the figure reported in the prior-year fiscal quarter. DG delivered an earnings beat of 2.8%, on average, in the trailing four quarters.
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How Urban Outfitters (URBN) is Placed Before Q2 Earnings
Urban Outfitters, Inc. (URBN - Free Report) is likely to register growth in its top line from the last fiscal year’s quarterly reading when it releases second-quarter fiscal 2023 results on Aug 23, after market close. The Zacks Consensus Estimate for quarterly revenues is currently pegged at $1,183 million, indicating a rise of 1.6% from the prior fiscal year’s quarterly reported figure.
However, the bottom line is likely to decline from the last fiscal year’s quarterly reading. The Zacks Consensus Estimate for quarterly earnings currently stands at 42 cents a share, suggesting a decrease of 47.7% from the earlier fiscal year’s quarterly tally. The consensus mark has declined 4.3% over the past 30 days.
A glance at this specialty lifestyle products retailer’s performance over the trailing four quarters shows that it delivered an earnings surprise of 7.6%, on average.
Factors to Note
Urban Outfitters’ performance for the fiscal second quarter is most likely to have benefited from its strategic efforts, including technological advancements, store rationalization and merchandising improvements. URBN is consistently strengthening its direct-to-consumer business, enhancing productivity in the existing channels, expanding its product assortment and optimizing inventory level.
URBN is also steadily boosting its presence by rapidly expanding its digital activities. Its FP Movement initiative to boost growth under the Free People brand is yielding too. All these tailwinds are expected to have favored Urban Outfitters’ top line during the quarter under review. On its last earnings call, management had projected sales growth in the fiscal second quarter from the year-ago fiscal period’s actuals, with the Retail segment comp sales expected to increase in the low single-digit range and the Wholesale segment sales in the mid-single digits. URBN anticipated a total sales rise in the low single-digit range.
The Zacks Consensus Estimate of $470 million for Anthropologie Group and $462 million for Free People Group suggests growth of 4.2% and 4.8%, respectively, from the corresponding last fiscal year’s quarterly readings. The consensus estimate for Nuuly, its subscription-based rental service for women’s clothes, is pegged at $17.3 million, hinting at a sharp increase from $9.9 million recorded in the year-earlier fiscal quarter. However, the consensus mark of $422 million for Urban Outfitters brand implies a decline of 4.5%.
However, the inflationary pressures from inbound freight costs and raw materials might have hurt profits in the quarter under review. Also, the supply-chain headwinds and higher transportation expenses remain deterrents. In addition, Urban Outfitters has been grappling with higher SG&A expenses for a while now.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Urban Outfitters this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Urban Outfitters, Inc. Price and EPS Surprise
Urban Outfitters, Inc. price-eps-surprise | Urban Outfitters, Inc. Quote
Urban Outfitters has a Zacks Rank #4 (Sell) and an Earnings ESP of -3.31%.
Stocks With Favorable Combination
Here are a few companies worth considering as our model shows that these have the right combination of elements to beat on earnings this season:
Chewy (CHWY - Free Report) currently has an Earnings ESP of +1.03% and a Zacks Rank #1. CHWY is likely to register a bottom-line decrease from the previous fiscal year’s quarterly reading when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly loss per share of 12 cents indicates deterioration from the year-earlier fiscal quarter’s loss of 4 cents.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Chewy's top line is expected to rise from the last fiscal year’s reading. The Zacks Consensus Estimate for quarterly revenues stands at $2.50 billion, which indicates an improvement of 16% from the figure reported in the prior-year fiscal quarter. CHWY has a trailing four-quarter earnings surprise of 4.1%, on average.
Ulta Beauty (ULTA - Free Report) currently has an Earnings ESP of +4.07% and a Zacks Rank #2. ULTA is likely to register a bottom-line improvement year over year when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $4.90 suggests an improvement of 7.5% from the year-ago fiscal quarter’s tally.
Ulta Beauty's top line is expected to rise from the prior fiscal year’s quarterly reading. The Zacks Consensus Estimate for quarterly revenues stands at $2.20 billion, indicating an improvement of 11.7% from the figure reported in the prior-year fiscal quarter. ULTA has a trailing four-quarter earnings surprise of 49.8%, on average.
Dollar General (DG - Free Report) currently has an Earnings ESP of +1.04% and a Zacks Rank of 2. DG is likely to register an increase in the bottom line from the prior fiscal year’s quarterly reading when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has increased a penny over the past 30 days to $2.93 per share. The consensus mark for DG’s earnings per share suggests 8.9% growth from the year-ago fiscal quarter’s reported number.
Dollar General’s top line is expected to have risen from the previous fiscal year’s quarterly tally. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.39 billion, suggesting a rise of 8.6% from the figure reported in the prior-year fiscal quarter. DG delivered an earnings beat of 2.8%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.