Earnings Review and Free Research Report: Urban Outfitters Reported Better Than Expected Results
Research Desk Line-up: Chico's FAS Post Earnings Coverage
LONDON, UK / ACCESSWIRE / September 6, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Urban Outfitters, Inc. (NASDAQ: URBN), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=URBN, following the Company's reporting of its financial results on August 15, 2017, for the second quarter of the fiscal year 2018. The Company's Wholesale segment's revenue increased 10% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Apparel Stores industry. Pro-TD has currently selected Chico's FAS, Inc. (NYSE: CHS) for due-diligence and potential coverage as the Company announced on August 30, 2017, its financial results for Q2 FY17 which ended on July 29, 2017. Register for a free membership today, and be among the early birds that get access to our report on Chico's FAS when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on URBN; also brushing on CHS. With the links below you can directly download the report of your stock of interest free of charge at:
http://protraderdaily.com/optin/?symbol=URBN
http://protraderdaily.com/optin/?symbol=CHS
Earnings Reviewed
For the three months ended July 31, 2017, Urban Outfitters' total revenue increased 2.0% to $872.93 million from $890.57 million in Q2 FY17. During Q2 FY18, the Company's Anthropologie Group's revenue decreased 1.1% to $362.45 million on a y-o-y basis; Free People's revenue increased 9.6% to $180.23 million on a y-o-y basis, and Food & Beverage's revenue increased 12.8% to $6.43 million on a y-o-y basis. The total revenue surpassed analysts' expectations of $863.87 million.
During Q2 FY18, Urban Outfitters' Retail segment's revenue decreased 3.1% to $790.63 million from $815.76 million in Q2 FY17. For the reported quarter, the Company's Wholesale segment's revenue increased 10% to $82.30 million from $74.81 million in Q2 FY17.
For the reported quarter, the Company's gross profit decreased 13.2% to $297.34 million from $342.51 million in Q2 FY17. The decrease was mainly due to underperformance in women's apparel and accessories, and expenses occurred in the penetration of direct to consumer channel and initial merchandise mark ups. For the reported quarter, the Company's gross margin decreased 440 basis points to 34.1% of revenue from 38.5% of revenue in Q2 FY17.
During Q2 FY18, Urban Outfitters' selling, general, and administrative expenses (SG&A) increased 30 basis points to 25.5% of revenue from 25.2% of revenue in Q2 FY17. The increase was due to a negative comparative retail segment revenue and an increased spending in digital marketing.
During Q2 FY18, Urban Outfitters' operating income decreased 36.4% to $75.18 million from $118.21 million in Q2 FY17. For the reported quarter, the Company's operating margin decreased 470 basis points to 8.6% of revenue from 13.3% of revenue in Q2 FY17.
For the reported quarter, the Company's effective tax rate was 35.1% compared to 35.5% in Q2 FY17.
During Q2 FY18, Urban Outfitters' net income decreased 35.1% to $49.92 million on a y-o-y basis from $76.92 million in Q2 FY17. For the reported quarter, the Company's diluted earnings per share (EPS) decreased 33.3% to $0.44 on a y-o-y basis from $0.66 in Q2 FY17. The diluted EPS surpassed analysts' expectations of $0.37.
During Q2 FY18, the Company repurchased and retired 5 million common shares for $91 million.
During H1 FY18, the Company opened stores at 12 new locations including 6 Free People stores, 4 Urban Outfitters stores, 1 Anthropologie Group store, and 1 Food & Beverage restaurant; and closed 6 locations including 3 Free People stores, 1 Urban Outfitters store, 1 Anthropologie Group store, and 1 Food & Beverage restaurant.
Balance Sheet
As on July 31, 2017, Urban Outfitters' cash and cash equivalents increased 13.8% to $276.76 million from $243.12 million in Q2 FY17.
During Q2 FY18, the Company's inventory decreased 55 basis points to $365.18 million from $367.20 million in Q2 FY17.
For the reported quarter, Urban Outfitters' accounts payable increased 18.5% to $159.76 million from $134.83 million in Q2 FY17.
Outlook
For Q3 FY18, Urban Outfitters' expects SG&A to decline by 1%.
For FY18, the Company expects capital expenditure to be $90 million and plans to open 18 new stores and close 9 stores.
The Company estimates effective tax rate to be 36.5% for the fiscal year 2018.
Stock Performance
On Tuesday, September 05, 2017, the stock closed the trading session at $21.87, climbing 3.65% from its previous closing price of $21.10. A total volume of 5.56 million shares have exchanged hands, which was higher than the 3-month average volume of 4.30 million shares. Urban Outfitters' stock price surged 13.43% in the last one month and 20.23% in the past three months. The stock is trading at a PE ratio of 14.63 and currently has a market cap of $2.51 billion.
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