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Retailer Urban Outfitters reported better than expected third quarter 2018 earnings after the close Monday. Comparable sales of Free People, Anthropologie & $URBN brands all grew strongly.

urban outfitters

Urban Outfitters, Inc. NASDAQ: URBN Reported Earnings After Close Monday

 $0.70 Beat $0.63 EPS AND $973.5M Beat $968 Million Revenue Forecast 

Earnings 

Urban Outfitters earnings for the third quarter were $77.5 million or $0.70 per share on $973.5 million. Earnings were up from $45.1 million or $0.41 per share last year, and exceeded the forecast of 63 cents a share on 8% revenue growth to $968 million.

Profits were boosted by a rise in gross profit, driven by lower markdowns at all three brands and leverage in store occupancy cost. 

Urban Outfitters, Inc. NASDAQ: URBN

Market Reaction After hours $37.06 +1.45 (+4.07%)

Highlights

“I’m pleased to announce our teams produced record Q3 sales and earnings. All brands, all channels, all product categories and all geographies delivered positive ‘comp’ sales,” said CEO Richard Hayne.

  • All three main business segments registered growth, with retail and wholesale sales gaining 9% and 12% respectively compared to the third quarter of 2018.
  • Retail comparable sales rose 8%, aided by a double-digit growth in the digital channel. 

Urban Outfitters is generally linked to the hipster millennials with that demographic a big feature of URBN's customer base and target. These is a grouping that society often parodies for their reliability, which carries some of the basis for the large short book on Wall Street. Not a sound basis to 'hate a stock'.  

Segment Brands

  • Free People sales rose 12 percent
  • Anthropologie Group fell 8 percent 
  • Urban Outfitters sales fell 7 percent

URBN Earnings Q3 18

During the year-to-date period, Urban Outfitters repurchased 1.5 million shares for about $58 million. 

URBN opened 14 new outlets during the period, including four Anthropologie stores, four Urban Outfitters stores, three Free People stores and three Food and Beverage restaurants.

Source: Urban Outfitters, AlphaStreet

From The TradersCommunity NewsDesk

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