Urban Outfitters, Inc. (NASDAQ:URBN) is set to release its third-quarter earnings during Tuesday’s after-hours session following a strong second quarter performance marked by record sales and earnings that surpassed expectations.
What To Know: In the second quarter, the company reported earnings of $1.24 per share, beating the consensus estimate of $1.01 by 22.77%, and achieved record quarterly sales of $1.35 billion, up 6.13% year-over-year.
Growth in the second quarter was driven by a 3.1% increase in total Retail segment net sales, with comparable sales rising 2% as both digital and retail store sales posted low single-digit gains. Free People and Anthropologie were standouts, with comparable sales growth of 7.1% and 6.7%, respectively, offsetting a 9.3% decline in the Urban Outfitters brand.
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The Nuuly rental business surged, with segment sales up 62.6%, propelled by a 55% increase in active subscribers. Wholesale sales also grew 15.1%, led by Free People's 17.5% increase in department and specialty store partnerships.
For the third quarter, investors may focus on whether Urban Outfitters can sustain its momentum, particularly in the outperforming Free People and Anthropologie brands, and continue scaling Nuuly's success.
Challenges in the Urban Outfitters brand and any potential macroeconomic headwinds affecting consumer spending will also be key considerations. Third quarter results will be pivotal as the company seeks to maintain its upward trajectory and profitability across all segments.
Is URBN A Good Stock To Buy?
An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Urban Outfitters‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.
These are known as capital allocation programs. Urban Outfitters does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.
For example, if you're looking to earn an annualized return of 8.66%, you'll need to buy a share of Manhattan Bridge Capital by the Dec. 31, 2024. Once done, you can expect to receive a nominal payout of $0.12 on Jan. 15, 2025.
Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Urban Outfitters will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.
According to data from Benzinga Pro, URBN has a 52-week high of $48.89 and a 52-week low of $32.02.
