Overview

* Urban Outfitters ( URBN ) Q2 net sales rise 11.3% to $1.50 bln, beating estimates

* Record net income of $143.9 mln reported for Q2, EPS at $1.58

* Subscription segment sales surge 53.2%, boosting overall revenue growth

Result Drivers

* RETAIL SALES GROWTH - Driven by mid single-digit positive growth in both retail store and digital channel sales

* SUBSCRIPTION SURGE - 53.2% increase in net sales primarily due to a 48.1% rise in average active subscribers

* WHOLESALE EXPANSION - 18.1% increase in sales driven by Free People sales to specialty customers

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Beat $1.50 $1.47

bln bln (9

Analysts

)

Q2 EPS $1.58

Q2 Net $143.86

Income mln

Q2 Gross $566.16

Profit mln

Q2 $174.39

Operatin mln

g Income

Q2 $183.27

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the apparel & accessories retailers peer group is "buy"

* Wall Street's median 12-month price target for Urban Outfitters Inc ( URBN ) is $78.00, about 2.2% above its August 26 closing price of $76.26

* The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)