Why Urban Outfitters Shares Are Jumping Today

Urban Outfitters Inc URBN reported a Q1 2023 sales increase of 6% Y/Y to $1.11 billion, beating the analyst consensus of $1.09 billion.
EPS of $0.56 beat the consensus of $0.35.
Retail segment sales rose 4% Y/Y to $1.0 billion. Comparable Retail segment net sales increased 5% Y/Y, led by high single-digit growth in digital channel sales and low single-digit increase in retail store sales.
Wholesale sales declined 11% Y/Y to $58.1 million, owing to a 14% Y/Y fall in Free People Group wholesale sales on weak sales to department stores and specialty customers.
Nuuly segment net sales rose significantly to $51.5 million from $22.8 million on subscribers growth of 118% as of the current quarter vs. the prior year quarter.
The gross profit increased 14.8% Y/Y to $371.2 million, with a margin expansion of 260 basis points Y/Y of 33.3%, driven by higher initial merchandise markups across all brands on lower inbound transportation expenses.
Selling, general and administrative expenses rose 8.2% Y/Y to $299.8 million.
The company held $381.4 million in cash and cash equivalents as of Q1 2023.
As of April 30, 2023, total inventory declined by 6.3% Y/Y to $590.3 million.
The company did not buy back shares in Q1 and had 19.2 million common shares remaining under the share repurchase program as of Q1 end.
Price Action: URBN shares are trading higher by 13.62% at $30.29 premarket on the last check Wednesday.

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