Expecting Record Sales And EPS For Urban Outfitters In FY23 - Analyst's Optimistic Take - Urban Outfitters (NASDAQ:URBN)

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 Read: Urban 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.

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