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Urban Outfitters (URBN) to Report Q1 Earnings: What to Expect?
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Urban Outfitters, Inc. (URBN - Free Report) is set to report first-quarter fiscal 2025 results on May 21, after market close. The Zacks Consensus Estimate for the quarterly top line is pegged at $1,168 million, indicating a 4.9% rise from the prior-year period’s reported level.
The Zacks Consensus Estimate for earnings is pinned at 49 cents per share, indicating a decline of 12.5% from earnings of 56 cents a share recorded in the prior-year period. The consensus mark has been unchanged over the past 30 days. The company delivered an average earnings surprise of 20.6% in the trailing four quarters.
Urban Outfitters, Inc. Price, Consensus and EPS Surprise
Urban Outfitters' adeptness at understanding and capitalizing on evolving consumer preferences and market dynamics has been instrumental in achieving sales goals. By closely aligning its product offerings and marketing strategies with shifting consumer trends, the company has stayed ahead of the curve. Significant growth of flagship brands like Free People and FP Movement signals a strong resonance with consumer preferences and market trends, driving continued sales growth.
The expansion of Nuuly, Urban Outfitters' rental service, not only diversifies revenue streams but also taps into the rising consumer interest in sustainable and flexible fashion choices. This strategic move aligns well with prevailing retail trends, enhancing the company's competitiveness in the market.
These initiatives, combined with ongoing operational efficiencies, are anticipated to positively impact Urban Outfitters' top-line growth. On its last reported earnings call, Urban Outfitters forecast mid-single-digit growth for fiscal first-quarter sales, driven primarily by the substantial expansion of Nuuly segment sales, expected to increase year over year in the mid-double digits.
Additionally, the Retail segment is projected to experience low-single-digit comps sales growth, underscoring the strength of core brands like Anthropologie and Free People. Our model suggests same-store sales growth of 6.5% and 14.2% in the Anthropologie Group and Free People brands, respectively, for the fiscal first quarter.
However, Urban Outfitters envisions a decline in the Wholesale segment. We expect the wholesale segment to witness a year-over-year fall of 4.5% in the quarter under review. Also, any deleverage in SG&A expenses are likely to keep margins under pressure, and, in turn, the bottom line. We foresee an 11.9% increase in SG&A expenses for the fiscal first quarter due to heightened marketing expenditure. As a percentage of sales, we expect the metric to increase 170 basis points to 28.6%.
What the Zacks Model Unveils
Our proven model does not 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 is not the case here, as you can see below. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Urban Outfitters currently has an Earnings ESP of -0.68% and a Zacks Rank of 3.
Stocks Poised to Beat Earnings Estimates
Here are three companies, which, according to our model, have the right combination of elements to beat on earnings this reporting cycle.
The Gap has an Earnings ESP of +14.13% and currently flaunts a Zacks Rank of 1. GPS is likely to register a bottom-line increase when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 13 cents suggests a significant increase from the year-ago quarter’s reported number.
The Gap’s top line is expected to have increased from the prior-year quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $3.28 billion, suggesting growth of 0.1% from the prior-year quarter’s reported figure. GPS has a trailing four-quarter earnings surprise of 180.9%, on average.
Abercrombie & Fitch Co. (ANF - Free Report) has an Earnings ESP of +5.10% and a Zacks Rank of 2 at present. The company is slated to witness top-line growth when it reports first-quarter fiscal 2024 results. The Zacks Consensus Estimate for ANF’s quarterly revenues is pegged at $940 million, which suggests growth of 12.4% from the figure reported in the prior-year quarter.
The consensus estimate for Abercrombie & Fitch’s quarterly earnings has moved up 4 cents over the past seven days to $1.54 per share, suggesting growth of 294.9% from the year-ago quarter’s reported number. ANF delivered an earnings surprise of 715.6%, on average, in the trailing four quarters.
American Eagle Outfitters (AEO - Free Report) currently has an Earnings ESP of +6.84% and a Zacks Rank of 3. The company is likely to register top and bottom-line growth when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for American Eagle’s quarterly earnings per share of 27 cents suggests an increase of 58.8% from the year-ago quarter’s reported level.
American Eagle has a trailing four-quarter earnings surprise of 22.7%, on average. The consensus estimate for AEO’s quarterly revenues is pegged at $1.15 billion, indicating a rise of 5.9% from the figure reported in the prior-year quarter.
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Urban Outfitters (URBN) to Report Q1 Earnings: What to Expect?
Urban Outfitters, Inc. (URBN - Free Report) is set to report first-quarter fiscal 2025 results on May 21, after market close. The Zacks Consensus Estimate for the quarterly top line is pegged at $1,168 million, indicating a 4.9% rise from the prior-year period’s reported level.
The Zacks Consensus Estimate for earnings is pinned at 49 cents per share, indicating a decline of 12.5% from earnings of 56 cents a share recorded in the prior-year period. The consensus mark has been unchanged over the past 30 days. The company delivered an average earnings surprise of 20.6% in the trailing four quarters.
Urban Outfitters, Inc. Price, Consensus and EPS Surprise
Urban Outfitters, Inc. price-consensus-eps-surprise-chart | Urban Outfitters, Inc. Quote
Factors to Note
Urban Outfitters' adeptness at understanding and capitalizing on evolving consumer preferences and market dynamics has been instrumental in achieving sales goals. By closely aligning its product offerings and marketing strategies with shifting consumer trends, the company has stayed ahead of the curve. Significant growth of flagship brands like Free People and FP Movement signals a strong resonance with consumer preferences and market trends, driving continued sales growth.
The expansion of Nuuly, Urban Outfitters' rental service, not only diversifies revenue streams but also taps into the rising consumer interest in sustainable and flexible fashion choices. This strategic move aligns well with prevailing retail trends, enhancing the company's competitiveness in the market.
These initiatives, combined with ongoing operational efficiencies, are anticipated to positively impact Urban Outfitters' top-line growth. On its last reported earnings call, Urban Outfitters forecast mid-single-digit growth for fiscal first-quarter sales, driven primarily by the substantial expansion of Nuuly segment sales, expected to increase year over year in the mid-double digits.
Additionally, the Retail segment is projected to experience low-single-digit comps sales growth, underscoring the strength of core brands like Anthropologie and Free People. Our model suggests same-store sales growth of 6.5% and 14.2% in the Anthropologie Group and Free People brands, respectively, for the fiscal first quarter.
However, Urban Outfitters envisions a decline in the Wholesale segment. We expect the wholesale segment to witness a year-over-year fall of 4.5% in the quarter under review. Also, any deleverage in SG&A expenses are likely to keep margins under pressure, and, in turn, the bottom line. We foresee an 11.9% increase in SG&A expenses for the fiscal first quarter due to heightened marketing expenditure. As a percentage of sales, we expect the metric to increase 170 basis points to 28.6%.
What the Zacks Model Unveils
Our proven model does not 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 is not the case here, as you can see below. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Urban Outfitters currently has an Earnings ESP of -0.68% and a Zacks Rank of 3.
Stocks Poised to Beat Earnings Estimates
Here are three companies, which, according to our model, have the right combination of elements to beat on earnings this reporting cycle.
The Gap has an Earnings ESP of +14.13% and currently flaunts a Zacks Rank of 1. GPS is likely to register a bottom-line increase when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 13 cents suggests a significant increase from the year-ago quarter’s reported number.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Gap’s top line is expected to have increased from the prior-year quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $3.28 billion, suggesting growth of 0.1% from the prior-year quarter’s reported figure. GPS has a trailing four-quarter earnings surprise of 180.9%, on average.
Abercrombie & Fitch Co. (ANF - Free Report) has an Earnings ESP of +5.10% and a Zacks Rank of 2 at present. The company is slated to witness top-line growth when it reports first-quarter fiscal 2024 results. The Zacks Consensus Estimate for ANF’s quarterly revenues is pegged at $940 million, which suggests growth of 12.4% from the figure reported in the prior-year quarter.
The consensus estimate for Abercrombie & Fitch’s quarterly earnings has moved up 4 cents over the past seven days to $1.54 per share, suggesting growth of 294.9% from the year-ago quarter’s reported number. ANF delivered an earnings surprise of 715.6%, on average, in the trailing four quarters.
American Eagle Outfitters (AEO - Free Report) currently has an Earnings ESP of +6.84% and a Zacks Rank of 3. The company is likely to register top and bottom-line growth when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for American Eagle’s quarterly earnings per share of 27 cents suggests an increase of 58.8% from the year-ago quarter’s reported level.
American Eagle has a trailing four-quarter earnings surprise of 22.7%, on average. The consensus estimate for AEO’s quarterly revenues is pegged at $1.15 billion, indicating a rise of 5.9% from the figure reported in the prior-year quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.