|Bid||22.25 x 4000|
|Ask||23.25 x 47300|
|Day's Range||22.75 - 23.22|
|52 Week Range||10.23 - 23.23|
|PE Ratio (TTM)||20.33|
|Forward Dividend & Yield||0.55 (2.54%)|
|1y Target Est||N/A|
As of May 23, Urban Outfitters (URBN) stock is down ~1% after reporting its fiscal Q1 2019 results on May 22. Gross margin was up 130 basis points, while operating margin expanded 354 basis points as expenses leveraged. As of May 23, Urban Outfitters (URBN) stock is up 16.4% on a YTD (year-to-date) basis.
The adjusted EPS growth in the first quarter was driven by higher sales, a lower tax rate, and leverage achieved in SG&A (selling, general, and administrative) expenses. Also, the effective tax rate saw a benefit of 120 basis points due to equity activity. The gross margin rose by 130 basis points to 32.8%.
The gross margin was down by 120 basis points after adjusting for accounting changes related to the adoption of ASC 606 (see the previous part of this series). 180 points of this fall came from a merchandise margin decline, which was partially offset by 60 basis point leverage from rent and occupancy costs. Gap had reported six straight quarters of gross margin improvements before this quarter.
Urban Outfitters (URBN) reported results for the first quarter of fiscal 2019 on May 22. The company’s sales of $855.7 million topped analysts’ consensus estimate of $838.1 million.
Using this recent American Eagle Outfitters trade, see how you can generate big overall gains by taking many smaller profits quickly.
American Eagle (AEO) grapples with soft margins due to higher promotions, and increased shipping costs and compensation. This is likely to impact the company's earnings in Q1.
As we discussed in Part 1, L Brands (LB) reported its first-quarter results after the market closed on May 23. While the company missed the earnings expectations, it beat analysts’ top-line expectations.
Ahead of American Eagle Outfitters’ (AEO) upcoming fiscal first-quarter results on May 31, most (53.0%) of the 19 analysts covering the stock recommend “hold,” 42.0% recommend “buy,” and 5.0% recommend “sell.” In the quarter, analysts expect American Eagle Outfitters’ top and bottom lines to grow 5.7% and 37.5%, respectively.
As of May 21, American Eagle Outfitters (AEO) stock had risen 21.1% year-to-date. In comparison, Abercrombie & Fitch (ANF) and Urban Outfitters (URBN) had rise 50.4% and 20.6%, respectively, while Gap (GPS) had fallen 6.9%. The S&P 500 had risen 2.2%.
Analysts expect American Eagle Outfitters’ (AEO) EPS (earnings per share) to grow 37.5% to $0.22 in the fiscal first quarter, marking a significant improvement over the 27% decline witnessed in the prior-year quarter. Improved revenue and profits are expected to cushion its bottom line.
Apparel retailer American Eagle Outfitters (AEO) is scheduled to report its fiscal first-quarter earnings on May 31. Wall Street expects the company’s revenue to grow 5.7% to $805.2 million, marking a significant improvement over the 1.7% growth seen in the prior-year quarter.
Can We Expect Another Strong Quarter from Guess? The five analysts that cover Guess (GES) gave the stock a 2.6 on a scale where one is a “strong buy” and five is a “strong sell.” The company has a better rating than apparel peers Gap (GPS) and Abercrombie & Fitch (ANF), which are rated 3.0 and 2.9, respectively. Urban Outfitters (URBN) and American Eagle Outfitters (AEO), however, have a better ranking of 2.5.
Guess’s (GES) sluggish sales growth and waning profitability also impacted its stock market performance. The fashion player’s stock lost 60% of its value between 2014 and 2016. However, as the multiyear streak of top-line declines came to a halt in 2017, its stock bounced back, and the share price surged 40% during the year.
Urban Outfitters smashes first-quarter forecasts after the close. The parent of Anthropologie and Free People also boasted double-digit comparable store sales.
In this updated daily bar chart of AEO, below, we can see a rally from an August low. The daily On-Balance-Volume (OBV) line has been in an uptrend the past twelve months and confirms the rally in the stock. The Moving Average Convergence Divergence (MACD) oscillator crossed back above the zero line last week for an outright go long signal.
Gap (GPS) is covered by 25 Wall Street analysts, who jointly rate the stock a 3 on a scale of 1 for “strong buy” to 5 for “sell.” The company is among the lower-rated apparel retailers. In comparison, Guess (GES), Urban Outfitters (URBN), and American Eagle Outfitters (AEO) are rated 2.6, 2.5, and 2.4, respectively.
Shares of American Eagle Outfitters Inc. fell 1.6% in premarket trade Monday, to pull back from a near 5-year closing high Friday, after the apparel retailer was downgraded at SunTrust Robinson Humphrey, which cited concerns that elevated inventories and promotions could limit gross margin upside. Analyst Pamela Quintiliano cut her rating to hold from buy, and trimmed her stock price target to $21 from $22. Quintiliano is also concerned over valuation, saying the stock continues to tick higher while fundamentals haven't quite caught up.
Successful swing trading is more than just picking winners. Managing position size is critical. A position size calculator can help do this for you automatically or you can do it yourself with some basic math. The idea is that when you are right on a swing trade, you want it to have an impact on your portfolio. When you're wrong,...
Where Is Urban Outfitters stock heading? As of May 16, Urban Outfitters (URBN) stock is up 20.7% on a YTD (year-to-date) basis. In comparison, American Eagle (AEO) and Abercrombie & Fitch (ANF) are up 19.9% and 55.6%, respectively.
Analysts expect Urban Outfitters’ adjusted EPS to be $0.30 in the first quarter of fiscal 2019, more than double the EPS in the corresponding quarter last year. Further, analysts expect the company to report a gross margin of 32.6%, up 110 basis points on a YoY basis in the first quarter of fiscal 2019. Urban Outfitters expects its gross margin to expand 100 basis points on a YoY basis driven by a reduction in markdowns.
The majority of the analysts covering Urban Outfitters (URBN) stock have maintained a “hold” rating ahead of its upcoming fiscal Q1 2019 results, which the company plans to release on May 22. Over the past 30 days, the target price was revised just once. On April 16, JPMorgan revised its target price for Urban Outfitters stock to $46.00 from the $43.00 projected earlier and retained the “overweight” rating.
As we discussed previously, L Brands (LB) reported its 1Q18 sales and lowered its earnings outlook for 1Q18 on May 10. The guidance revision triggered a fall in the company’s share price, which touched a 6.5-year low during trading on May 10. The stock price finally closed 7.6% lower than the previous day’s closing at $31.68.
L Brands (LB) is scheduled to report its 1Q18 financial results on May 23. Since L Brands reports its sales results every month, the company also released its 1Q18 top-line numbers on May 10. L Brands’ 1Q18 total sales increased 8% YoY (year-over-year) to $2.63 billion—better than analysts’ forecast of a 6.4% increase YoY to $2.59 billion.
Cue “I’m Too Sexy”, the 1991 hit by English band Right Said Fred: Victoria’s Secret owner L Brands (LB) is in free-fall after a sales report, and the problem, in part, might be cultural tone-deafness. “Victoria’s Secret did a great job in the 1990s making people pay up for sexy,” says Jefferies analyst Randal Konik. Consumers want a message that speaks to them.” April sales at longstanding Victoria’s Secret stores fell 5% from a year earlier, the company said Thursday.