Exterior view of an Urban Outfitters retailer is seen in Pasadena, California, May 22, 2021.
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Shares of Urban Outfitters popped about 8% Tuesday after the corporate reported fiscal first-quarter earnings that beat Wall Street’s estimates on the highest and backside traces.
Here’s how the attire retailer did in contrast with what Wall Street was anticipating, based mostly on a survey of analysts by Refinitiv:
- Earnings per share: 56 cents versus 35 cents anticipated
- Revenue: $1.11 billion versus $1.09 billion anticipated
The firm’s reported web earnings for the three-month interval that ended April 30 was $52.82 million, or 56 cents a share, in contrast with $31.53 million, or 33 cents a share, a 12 months earlier.
Sales rose to $1.11 billion, up about 6% from $1.05 billion a 12 months earlier.
Some retailers this earnings season are benefiting from a extra secure provide chain and decreased freight bills that would assist their margins in the event that they’re in a position to hold the line on promotions. Urban Outfitters is one of them.
Other attire and shoe retailers, such as Foot Locker, noticed their margins dip due to promotions and a slowdown in client spending. Urban Outfitters, in the meantime, noticed margins improve 2.6 proportion factors on account of increased merchandise markups pushed by decrease transportation prices. The firm stated margins additionally benefited from decrease markdowns at its Anthropologie and Free People manufacturers.
Sales at Urban Outfitters’ namesake banner dropped 13% 12 months over 12 months, however gross sales at its Free People and Anthropologie manufacturers every noticed double-digit will increase.
The firm’s rental program Nuuly, a significant competitor to Rent the Runway that is rising amongst Gen Z consumers, noticed a 118% improve in subscribers in contrast with the prior-year quarter, and a 125% improve in gross sales.
In March, the corporate stated it expects Nuuly to report its first worthwhile quarter later this 12 months. It’s not but clear if the section has hit that milestone.