Urban Outfitters Earnings: URBN Stock Drops 4% on Poor Q1 Performance

Urban Outfitters (NASDAQ:URBN) preliminary earnings for first quarter of 2020 have URBN stock falling after-hours Tuesday. That’s due to its diluted losses per share of $1.41 missing Wall Street’s estimate of a 20-cent loss. The company’s revenue of $588.48 million also doesn’t reach analysts’ estimates of $693.55 million.

Urban Outfitters Earnings: URBN Stock Drops 4% on Poor Q1 Performance

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Now, let’s take a more thorough look at the most recent Urban Outfitters earnings report.

  • Diluted per-share losses are much worse than URBN’s diluted earnings per share (EPS) of 31 cents in the first quarter of 2019.
  • Revenue for the quarter comes in 31.9% lower than the $864.41 million reported during the same time last year.
  • Operating loss of $198.74 million is a negative change year-over-year from an operating income of $40.02 million.
  • The Urban Outfitters earnings report also has it bringing in a net loss of $138.44 million.
  • That’s a major decline compared to the company’s net income of $32.59 million.

Richard Hayne, CEO of Urban Outfitters, said this in the Q1 earnings report:

“I am incredibly proud of our teams for their hard work, dedication and resilience over the last two months. The actions we’ve taken during the quarter to strengthen our balance sheet and help preserve liquidity provides us with financial flexibility during this difficult period. I’m confident our proven ability to execute our multi-channel, multi-brand, and multi-category strategy will ensure our future success.”

Urban Outfitters doesn’t provide an outlook update in the current earnings report. That makes sense with the novel coronavirus causing problems for the economy. Many other companies aren’t providing guidance during this time.

URBN stock was down 4.2% after markets closed on Tuesday.

As of this writing, William White did not hold a position in any of the aforementioned securities.


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