Nordstrom, Urban Outfitters Down 5% After Reporting Q2 Results
Shares of apparel retailers’, Nordstrom, Inc. (JWN) and Urban Outfitters Inc. (URBN), are down nearly 5% in extended trading session on Tuesday after reporting second-quarter results.
Urban Outfitters reported second-quarter profit of $127.26 million or $1.28 per share, compared to $34.40 million or $0.35 per share last year. Analysts polled by Thomson Reuters had expected earnings of $0.78 per share. Analysts’ estimates typically exclude special items.
The retailer’s revenue for the quarter surged 45.0% to $1.16 billion from $803.3 million last year. Analysts had a consensus revenue estimate of $1.08 billion.
Comparable Retail segment net sales increased 22%, driven by strong double-digit growth in digital channel sales, partially offset by low single-digit negative retail store sales due to reduced store traffic.
Nordstrom reported second-quarter profit of $80 million or $0.49 per share, compared to a loss of $255 million or $1.62 per share last year. Analysts polled by Thomson Reuters expected profit of $0.28 per share for the quarter.
Revenues for the quarter more than doubled from to $3.57 billion from $1.78 billion in the same period last year. Analysts had a consensus revenue estimate of $3.31 billion.
For the Nordstrom brand, net sales increased 127 percent, while the Nordstrom Rack brand, net sales increased 61 percent compared with the same period in fiscal 2020.
Looking forward to full year 20221, Nordstrom expects revenue growth, including retail sales and credit card revenues, to be over 35 percent, up from prior estimate of more than 25 percent.
URBN closed Tuesday’s trading at $40.73, up $2.10 or 5.44%, on the Nasdaq. The stock, however, slipped $1.73 or 4.25%, in the after-hours. JWN closed trading at $37.81, up $1.14 or 3.11%, on the NYSE. However, the stock slipped $2.33 or 6.16% in the after-hours trading.
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