Gen Z Retailers Fashion Buy Points With Earnings Due

Urban Outfitters (URBN) prepares to report earnings late Tuesday for its fiscal first quarter, with peers Abercrombie & Fitch (ANF) and American Eagle Outfitters (AEO) due next week.

As retail earnings pick up, Urban Outfitters stock and its Gen Z fashion peers are consolidating and working on buy points. But growth rates are expected to slow amid tougher comparisons.

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Urban Outfitters Earnings

Estimates: Analysts expect Urban Outfitters earnings per share will fall 5% to 53 cents in the April-ending quarter, according to FactSet. Sales are seen rising 6%, year over year, to $1.179 billion, with same-store sales up 3.5%. 

Results: Check back after the close.

Outlook: Analysts anticipate 10% profit growth in fiscal 2025 and 9% the following year, FactSet shows.

Urban Outfitters earnings boomed 91% in fiscal 2024 after cratering the previous year. The Philadelphia-based company’s fiscal year ends in January.

Urban Outfitters Stock

Shares of the trendy apparel retailer rose 2 cents to 41.48 on the stock market today. Urban Outfitters stock is working on a 47.29 buy point in a 13-week consolidation, MarketSurge pattern recognition shows.

A move above the May 13 high of 42.52 could offer an early entry.

Abercrombie stock broke out past 140.28 on Monday and rose 0.7% within the buy zone on Tuesday. American Eagle stock dipped 0.2% on Tuesday as it continues to work on a 26.44 buy point, but is hitting resistance at the 50-day line.

Slowdown Seen For Gen Z Fashion Retailer

Urban Outfitters flourishes a best-possible 99 EPS Rating. The Gen Z friendly retailer reported earnings growth ranging from 70% to 120% in its latest four quarters on consistent single-digit sales growth.

On Feb. 27, Urban Outfitters stock hit a five-year-plus high. 

But on April 27, Jefferies analyst Corey Tarlowe warned about “a notable deceleration” in foot traffic at the retailer’s Urban Outfitters, Anthropologie and Free People locations.

Along with falling foot traffic, Urban Outfitters faced promotional pressures and more competition, including from Gap (GPS), the analyst said.

Abercrombie reports May 29 before the open. American Eagle reports May 29 after the close. Gap reports late on May 30. 

With retail earnings reports underway in earnest, investors are eager to learn more about inventory levels, the impact of stubborn inflation on shoppers, and other topics. 

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