Urban Outfitters Q3 Report On Deck: Is Another Strong Quarter In The Cards?

Urban Outfitters (URBN - Free Report) is set to report its third-quarter results after the closing bell on Tuesday, November 19. The retailer has seen its shares drop over 7% in 2019 but has outperformed the apparel retail market, which has seen a 23% decline thus far.

The apparel retailer is coming off a strong second-quarter report driven by a successful back to school season. Urban Outfitters is looking to post another earnings report that can captivate Wall Street and push its shares into the green YTD. Let’s take a closer look at the company and what to expect in Q3.

Overview

In Q2, Urban Outfitters reported better than expected earnings of $0.61 per share. The company also saw retail net sales fall 3% Y/Y in the second quarter and generated a gross margin of 32.8%, compared to 35.9% a year ago.

Urban Outfitters’ management was pleased with the quarterly performance as the company’s CEO, Richard Hayne, stated: "I am pleased to report that customer reaction to our early fall apparel assortments have improved significantly from our second-quarter results.” Hayne also went on to spread optimism about the outlook for the business, commenting "Third quarter-to-date 'comp' sales are positive at all three brands."

The company’s better than expected earnings and an optimistic outlook were enough to send the stock trading higher in the aftermath of its second-quarter report. The company’s initial success with its fall lineup spurred enthusiasm about the company’s Q3 as it seemed that Urban Outfitter’s turnaround efforts were finally materializing into results.

Outlook

The company’s optimism circulated through Wall Street at a time when worries about the potential impact the trade war could have on the retail sector were running rampant. The boost in the company’s performance also left investors happy and gave them confidence in Urban Outfitters’ initiatives.

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