Urban Outfitters URBN Q1 2023 Earnings Report
Exterior view of an Urban Outfitters store in Pasadena, California, May 22, 2021.
RBL/Bauer-Griffin | GC Images | Getty Images
Shares of Urban Outfitters Soared about 8% on Tuesday after the company reported earnings for the fiscal first quarter that beat Wall Street estimates for sales and earnings.
Here’s how the apparel retailer compared to Wall Street expectations, based on a Refinitiv analyst poll:
- Earnings per share: 56 cents versus 35 cents expected
- Revenue: $1.11 billion versus $1.09 billion expected
The company’s reported net income for the three-month period ended April 30 was $52.82 million, or 56 cents a share, compared to $31.53 million, or 33 cents a share, a year ago.
Revenue rose to $1.11 billion, up about 6% from $1.05 billion a year earlier.
Some retailers are benefiting from a more stable supply chain and lower freight costs this earnings season, which could improve their margins if they’re able to hold out on promotions. Urban Outfitters is one of them.
At other apparel and footwear retailers, such as Foot Locker, margins fell due to promotions and a slowdown in consumer spending. Urban Outfitters, on the other hand, saw a margin increase of 2.6 percentage points due to higher markups due to lower transportation costs. The company said margins also benefited from lower discounts at its Anthropologie and Free People brands.
Sales of Urban Outfitters’ eponymous banner were down 13% year over year, but sales of its Free People and Anthropologie brands each posted double-digit gains.
The Nuuly company’s rental program, a key competitor Rent the runway That’s growing among Gen Z shoppers, seeing a 118% increase in subscribers and a 125% increase in revenue compared to the year-ago quarter.
In March, the company announced that it expects Nuuly to report its first profitable quarter later this year. It’s not yet clear if the segment has reached that milestone.
https://www.cnbc.com/2023/05/23/urban-outfitters-urbn-q1-earnings-report-2023.html Urban Outfitters URBN Q1 2023 Earnings Report