
URBN Preview: It's All in the Anthropologie

By Jordan Kahn
About this article:
Urban Outfitters is set to report earnings before the open tomorrow. Consensus estimates are for EPS of 35 cents, which would be flat from year-ago levels. URBN has beat consensus estimates the last two quarters and estimate revisions have continued to drift upward. With Anthropologie sales picking up lately and continued expense control, my guess is URBN will still show a penny or two to the upside.
Revenues were released last week with the October same-store sales report, totaling $506 million, or 6% year-on-year growth -- a pickup from last quarter's 1% growth rate. By division, comps for Urban Outfitters (39% of sales) declined 5%, Anthropologie (38% of sales) actually rose 3%, Free People (2% of sales) declined 13% and the direct-to-consumer division (16% of sales, websites, catalogs, etc) surged 21%.
While Anthro has seen a pickup in sales recently, the Urban brand has seen less strength...

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