Expecting Record Sales And EPS For Urban Outfitters In FY23 - Analyst's Optimistic Take

  • Telsey Advisory Group analyst Dana Telsey reiterated an Outperform rating on the shares of Urban Outfitters, Inc. URBN, slightly raising the price target to $35 from $34
  • Urban Outfitters 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.
  • The analyst applauds the company's Q1 results, saying it was the best Q1 EPS in company history.
  • The results reflected a beat across the board as sales growth, gross margin expansion, and operating deleverage all were ahead of expectations. 
  • The analyst notes that the second quarter outlook exceeds market expectations led by topline and gross margin.
  • While the near term is expected to remain pressured, the back half of the year is still anticipated to improve, supporting margin expansion for the entire year. 
  • Reflecting the 1Q23 beat and continued optimism for the balance of the year, the total sales forecast increased slightly to $5.036 billion (up 5.0%) compared to the prior expectation of $5.021 billion. 
  • On the bottom line, the analyst sees FY23 EPS of $2.70, up from $2.55 previously.
  • Also ReadUrban Outfitters Gets Price Target Hikes By Analysts Following Strong Q1 Results
  • Price Action: URBN shares are trading higher by 14.90% to $30.63 on the last check Wednesday.
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