Urban Outfitters Stock Slips Ahead Of Q3 Earnings: Retail’s Neutral

Shares of Urban Outfitters Inc. ($URBN) were down 1.99% on Tuesday afternoon ahead of the company’s third-quarter earnings, but retail sentiment inched up.

Wall Street analysts expect Urban Outfitters to announce earnings of $0.86 per share on revenues of $1.34 billion. The company is set to announce results after the market closes on Tuesday.

For its second quarter, Urban Outfitters’ EPS stood at $1.24 on revenues of $1.35 billion, beating estimates. “We are pleased to report record second-quarter sales fueled by strength across all three segments – Retail, Nuuly and Wholesale,” Richard A. Hayne, CEO of Urban Outfitters, said at the time.

Retail sentiment on the stock improved to ‘neutral’ (51/100) from ‘bearish’ (25/100) a day ago. Message volumes remained in the ‘high’ zone.

URBN sentiment meter and message volumes on Nov 26 as of 3:15 pm ET| Source: Stovktwits

Last week, Citi raised the company’s price target to $42 from $39 while keeping a ‘Neutral’ rating, The Fly.com reported. According to the firm, a Q3 earnings beat was likely driven by stronger-than-consensus gross margins. “Warmer weather headwinds” were temporary, according to the firm, while its “Free People and Anthropologies comps” are holding up relatively well, the report added.

Citi’s prediction for the company’s Q4 guidance is a “conservative approach,” with consumers choosing to show up for the holiday season.

Philadelphia-based Urban Outfitter’s portfolio includes global brands such as Anthropologie, Free People, FP Movement, and Nuuly.

Urban’s stock is up 11.11% year-to-date.

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