An Urban Outfitters shop in London.
Tolga Akmen /AFP via Getty Images
Urban Outfitters is surging more than 11% on Wednesday, thanks to robust fiscal first-quarter earnings, which were good enough to earn the stock at least one upgrade.
Urban Outfitters (ticker: URBN) said it earned $53.6 million, or 54 cents a share, compared with a loss of $1.41 a share in the year-ago period. Revenue rose 57.6% to $927.4 million, up more than 7% from the comparable prepandemic period in 2019. Analysts were looking for EPS of 17 cents on revenue of $899 million.
Same-store sales rose 51%, above the 38.4% consensus estimate.
Urban Outfitters stock is up 12.9%, at $39.47, in recent trading, while the S&P 500 is up 0.1%. The shares have climbed 54% year to date and nearly 108% over the past 52 weeks.
The report comes amid a strong earnings season for many retailers, which have benefited from pent-up demand and more in-person shopping.
Urban Outfitters’ results were good enough to convince one bear to change his mind: J.P. Morgan analyst Matthew Boss raised his rating on the stock to Neutral from Underweight following the earnings, and raised his price target to $38 from $30.
He was encouraged that all three of the company’s brands—Anthropologie, Free People, and its flagship Urban Outfitters banner—delivered double-digit comparable-sales growth. “The last three times all three brands turned positive the trend lasted for 5-7 consecutive quarters,” he writes. Boss also sees the company benefiting from ongoing fashion shifts, as well as consumers returning to office and social activities.
Write to Teresa Rivas at [email protected]
