Urban Outfitters, Inc. (Nasdaq:URBN) late Tuesday [Mar 7, 2017 | 4:09pm ] posted in-line fourth-quarter earnings results, as comparable sales were flat from the year-ago period, as predicted.
Written by StockNews.com
The Philadelphia-based specialty apparel retailer reported Q4 earnings per share (EPS) of $0.55, which was in-line with the Wall Street consensus estimate of $0.55.
Revenues rose 1.7% from last year to $1.03 billion, narrowly missing analysts’ view for $1.04 billion.
Overall, comparable Retail segment sales (“comps”) were flat in the latest period. Comps rose 2.0% at Urban Outfitters and 1.2% at Free People, but fell 2.9% at the Anthropologie Group. URBN noted that the growth at its namesake and Free People stores were driven by strong growth in the direct-to-consumer channel, but hurt by brick-and-mortar retail store comparable net sales.
Comps are considered a key indicator of a retailer’s health, since they only measure the year-over-year performance of stores open for at least 12 months.
Back on February 7, URBN had preannounced sales of $1.03 billion and flat comps, so results were indeed aligned with its early estimates.
The company briefly commented on its results via press release:
“We are pleased to announce record fourth quarter and full year sales driven mostly by the continued success in the direct-to-consumer channel,” said Richard A. Hayne, Chief Executive Officer. “As we enter a new year, we will continue to shift our efforts and spend into our fastest growing channel,” finished Mr. Hayne.
Urban Outfitters shares rose $0.47 (+1.85%) to $25.88 in after-hours trading Tuesday. Year-to-date, URBN had declined -10.78% year-to-date, versus a +6.03% rise in the benchmark S&P 500 index during the same period.
URBN currently has a StockNews.com POWR Rating of D (Sell) and is ranked #46 of 67 stocks in the Fashion & Luxury category.
