Categories AlphaGraphs, Earnings, LATEST, Retail
Urban Outfitters stock gains as Q2 earnings top expectations; sales miss
Net sales of Urban Outfitters (NASDAQ: URBN) declined in the second quarter of 2020 and missed the Street’s expectations, hurt by lower comparable-store sales. Consequently, earnings dropped but came in above the forecast. The company’s stock gained about 5% during Tuesday’s extended trading session, immediately after the announcement.
At $962 million, net sales were lower by 3% from the year-ago period and below the consensus estimate. Comparable retail segment net sales declined 3%, hurt by negative retail store sales, which was partially offset by an increase in the digital channel.
Brand-wise, comparable retail segment sales at Free People rose 6%, while sales decreased 3% at the Anthropologie Group and 5% at Urban Outfitters. Wholesale segment net sales were down 8%.
Also see: Beyond Meat stock gets a boost after rating upgrade
Net income dropped to $60 million or $0.61 per share from $92.8 million or $0.84 per share in the second quarter of 2019. The bottom line, however, came in above the estimates.
Richard Hayne, chairman of the company, said, “I am pleased to report that customer reaction to our early fall apparel assortments have improved significantly from our second-quarter results. Third quarter-to-date ‘comp’ sales are positive at all three brands.”
The retail segment of the Pennsylvania-based apparel maker, which owns popular brands like Anthropologie and Free People, accounted for about 91% of the total sales in the second quarter. Considering the strong user growth for its digital channel and favorable exchange rates, the company continues to invest in the online platform.
During the six months ended July, the management repurchased and retired around 8.1 million common shares for about $217 million.
Shares of Urban Outfitters lost consistently in the past twelve months and traded at a two-year low in mid-August. They dropped around 37% since the beginning of the year. The stock closed Tuesday’s regular trading session slightly higher.
Most Popular
CL Earnings: Key quarterly highlights from Colgate-Palmolive’s Q2 2024 financial results
Colgate-Palmolive Company (NYSE: CL) reported its second quarter 2024 earnings results today. Net sales increased 4.9% year-over-year to $5 billion. Organic sales increased 9%. Net income attributable to Colgate-Palmolive Company was $731
Key takeaways from Visa’s Q3 2024 earnings report
Credit card behemoth Visa, Inc. (NYSE: V) this week reported mixed results for the June quarter, with earnings matching expectations and sales slightly missing the view. Both numbers grew in
Southwest Airlines (LUV): A look at the airline’s performance in Q2 2024
Shares of Southwest Airlines Co. (NYSE: LUV) were up over 6% on Thursday after the company beat earnings estimates for the second quarter of 2024. The stock has gained 4%