2 Urban Outfitters Analysts Break Down Q3 Earnings As Stock Pulls Back

Urban Outfitters Inc URBN reported third-quarter earnings at 89 cents per share Monday, beating the consensus estimate of 84 cents per share, driven by top-line growth and margin expansion.

Wells Fargo On Urban Outfitters

Wells Fargo analyst Ike Boruchow reiterated an Equal Weight rating for Urban Outfitters, while keeping the price target unchanged at $36.

Boruchow commented that the quarterly performance was “somewhat disappointing,” with the reported figures coming in marginally ahead of Street expectations but “below buyside expectations.”

Supply chain issues had adversely impacted the company’s sales in August and September, he added.

“However, URBN’s outlook was much more compelling,” the analyst wrote. “All in, there were puts and takes, and we don’t think numbers ultimately move that much following this event,” he added.

Telsey Advisory On Urban Outfitters

Telsey Advisory analyst Dana Telsey maintained an Outperform rating for the company, with the price target held at $47.

“By brand, all three businesses turned in solid comp growth over 3Q19 led by Free People (up 55% vs. 53% in Q2), while UO and Anthro comps grew high-single digits from two years ago,” the analyst wrote.

“Looking ahead, while supply chain challenges and COVID-related disruptions continue to weigh, management struck an optimistic tone with regards to having sufficient inventory both on-hand and coming in to support strong Q4 results,” she added.

URBN Price Action: Shares of Urban Outfitters were down 11.5% at $32.98 midday Tuesday.