Benzinga | Aug 25, 2021 06:18AM EDT

Urban Outfitters Q2 Earnings Top Estimates

* Urban Outfitters Inc (NASDAQ:URBN) reported second-quarter FY22 sales growth of 20.3% against Q2FY20, to $1.16 billion, beating the analyst consensus of $1.08 billion.

* Due to the material impact of COVID-19 on business operations in FY21, the management viewed the comparison of FY22 results to FY20 as the more meaningful measurement.

* Retail segment net sales increased 24%, and wholesale segment decreased 30% versus Q2 ended July 31, 2019.

* By brand, comparable Retail segment net sales increased 53% at the Free People Group, 20% at Urban Outfitters, and 14% at the Anthropologie Group.

* Gross profit rose 37.8% from Q2 FY20, with the margin expanding 478 basis points to 37.6%.

* The operating margin was 14.3%, and operating income for the quarter rose 112.5% from FY20 to $165.8 million.

* Total inventory increased 9.8% to $483.15 million as of July 31, 2021, against the same period in FY20.

* The company held $464.8 million in cash and equivalents as of July 31, 2021.

* EPS of $1.28 beat the analyst consensus of $0.79.

* Price Action: URBN shares closed higher by 5.44% at $40.73 on Tuesday.