Urban Outfitters Inc. Earnings Cheat Sheet: The Profit Streak Continues

S&P 500 (NYSE:SPY) component Urban Outfitters, Inc. (NASDAQ:URBN) reported its results for the third 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 Outfitters Earnings Cheat Sheet for the Third Quarter

Results: Net income for the apparel store fell to $50.7 million (33 cents per share) vs. $73.1 million (43 cents per share) a year earlier. This is a decline of 30.6% from the year earlier quarter.

Revenue: Rose 6.3% to $610 million from the year earlier quarter.

Actual vs. Wall St. Expectations: URBN beat the mean analyst estimate of 31 cents per share. It fell short of the average revenue estimate of $629.2 million.

Quoting Management: “We have made progress in many categories during the quarter,” said Chief Executive Officer, Glen T. Senk. “We anticipate additional improvements through continued product focus, aggressive inventory management and the organization changes we announced last week.”

Key Stats:

The company has now seen net income fall in each of the last four quarters. In the second quarter, net income fell 20.9% while the figure fell 27.1% in the first quarter and 3.1% in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 10.3% to $609.2 million in the second quarter. The figure rose 9.2% in the first quarter from the year earlier and climbed 13.6% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of 35 cents versus a mean estimate of net income of 32 cents per share.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 54 cents per share to 44 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. At $1.34 per share, the average estimate for the fiscal year has fallen from $1.53 ninety days ago.

Competitors to Watch: Abercrombie & Fitch Co. (NYSE:ANF), The Gap Inc. (NYSE:GPS), American Eagle Outfitters (NYSE:AEO), The Buckle, Inc. (NYSE:BKE), Pacific Sunwear of California, Inc. (NASDAQ:PSUN), Zumiez Inc. (NASDAQ:ZUMZ), Aeropostale, Inc. (NYSE:ARO), The Wet Seal, Inc. (NASDAQ:WTSLA), American Apparel (AMEX:APP) and Stein Mart, Inc. (NASDAQ:SMRT).

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

 

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