Urban Outfitters Earnings: The Profit Streak Continues

S&P 500 (NYSE:SPY) component Urban Outfitters Inc. (NASDAQ:URBN) reported its results for the first quarter. Urban Outfitters is engaged in the general consumer product retail and wholesale business, selling to customers through various channels including retail stores, catalogs and web sites.

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Urban Earnings Cheat Sheet for the First Quarter

Results: Net income for Urban Outfitters Inc. fell to $34 million (23 cents per share) vs. $38.6 million (23 cents per share) a year earlier. This is a decline of 12.1% from the year-earlier quarter.

Revenue: Rose 8.6% to $568.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Urban Outfitters Inc. beat the mean analyst estimate of 20 cents per share. Analysts were expecting revenue of $578.5 million.

Quoting Management: “We are pleased to announce record first quarter sales that were driven in part by positive regular price ‘comp’ sales,” said Chief Executive Officer, Richard A. Hayne. “We are encouraged by the customer response to the steady progress our brands have made in creative and product execution.”

Key Stats:

Revenue has risen for the last four quarters. Revenue increased 9.3% to $730.6 million in the fourth quarter of the last fiscal year. The figure rose 6.3% in the third quarter of the last fiscal year from the year earlier and climbed 10.3% in the second quarter of the last fiscal year from the year-ago quarter.

The company topped expectations last quarter after falling short of forecasts in the fourth quarter of the last fiscal year with net income of 27 cents versus a mean estimate of net income of 30 cents per share.

Net income has dropped 27.7% year-over-year on average across the last five quarters. Performance was hurt by a 47.8% decline in the fourth quarter of the last fiscal year from the year-earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from 39 cents a share to 37 cents over the last ninety days. The average estimate for the fiscal year is $1.47 per share, down from $1.54 ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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