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Urban Outfitters (URBN) to Report Q1 Earnings: What's in Store?

Urban Outfitters, Inc. URBN is likely to report strong top and bottom-line numbers when it releases first-quarter fiscal 2024 results on May 23, after market close. The top-line estimate for the quarter currently stands at $1,092 million, indicating a 3.7% increase from the prior-year period’s level.

The Zacks Consensus Estimate for earnings is pinned at 36 cents per share, indicating growth of 9.1% year over year. The consensus mark has declined a penny over the past seven days.

The company delivered an average negative earnings surprise of 7.1% in the trailing four quarters.

Factors to Note

Urban Outfitters’ fiscal first-quarter performance is likely to have benefited from its strategic efforts, including technological advancements, store rationalization and merchandising improvements. The company has been strengthening its direct-to-consumer business, enhancing productivity in the existing channels, expanding product assortment and optimizing inventory level.

URBN is also strengthening its presence with rapid expansion of digital activities. Its FP Movement initiative to boost growth at the Free People brand is also promising.

All these factors are expected to favor Urban Outfitters’ fiscal first-quarter results. On its last earnings call, management cited that it is pleased with the robust consumer demand at the start of the fiscal first quarter, and the trend is likely to continue through the rest of the quarter.

For the to-be-reported quarter, Urban Outfitters projects similar sales growth to that reported in the previous quarter. The doubling of Nuuly segment sales and low-single-digit Retail segment comp sales are likely to have aided the improvement, somewhat offset by lower sales across the Wholesale segment.

URBN anticipates gross margin to increase 100 basis points year over year, mainly driven by lower inbound freight costs that will benefit initial product margins.

However, a tough operating backdrop, including inflationary pressures and currency headwinds, might have acted as a headwind. Management had earlier stated that foreign exchange is likely to hurt sales by roughly 100 basis points. Urban Outfitters has also been grappling with higher SG&A expenses for a while now.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Urban Outfitters this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Urban Outfitters, Inc. Price and EPS Surprise

 

Urban Outfitters, Inc. Price and EPS Surprise
Urban Outfitters, Inc. Price and EPS Surprise

Urban Outfitters, Inc. price-eps-surprise | Urban Outfitters, Inc. Quote

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Urban Outfitters has an Earnings ESP of -0.46% and a Zacks Rank #3 at present.

Stocks Worth a Look

Here are a few companies, which according to our model, have the right combination of elements to come up with an earnings beat this reporting cycle:

American Eagle Outfitters AEO currently has an Earnings ESP of +9.81% and a Zacks Rank of 2.  You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is expected to beat on earnings when it reports fiscal first-quarter 2024 results. The Zacks Consensus Estimate for earnings is pegged at 17 cents per share, indicating an increase of 6.3% from the year-ago quarter’s level.

American Eagle Outfitters’ revenues are anticipated to increase year over year. The consensus mark for the same is pinned at $1.06 billion, implying a 0.8% improvement from that reported in the prior-year period.

Casey's General Stores CASY currently has an Earnings ESP of +0.05% and a Zacks Rank of 2. The company is expected to register bottom-line growth when it reports fiscal first-quarter 2024 results. The Zacks Consensus Estimate for earnings stands at $1.61 per share, indicating a 0.6% increase from the year-ago quarter’s figure.

The company’s revenues are anticipated to fall year over year. The consensus mark for the same is pegged at $3.42 billion, indicating a decline of 1.2% from that reported in the year-ago quarter. CASY delivered a trailing four-quarter surprise of 9.9%, on average.

lululemon athletica LULU currently has an Earnings ESP of +1.97% and a Zacks Rank of 3. LULU is likely to report strong top-line figure when it releases fiscal first-quarter results.

The Zacks Consensus Estimate for lululemon athletica’s revenues is pegged at $1.9 billion, implying growth of 19.5% from the prior-year quarter’s number. The consensus mark for earnings stands at $1.93 per share, indicating a 30.4% increase from that reported in the prior-year period. LULU delivered an average trailing four-quarter surprise of 6.8%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report

Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report

lululemon athletica inc. (LULU) : Free Stock Analysis Report

Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report

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