Urban Outfitters Inc.
), the specialty retailer of fashion apparel and accessories,
footwear, home décor and gifts products, is slated to report
second-quarter fiscal 2015 results on Aug 18. In the last quarter,
it posted a negative surprise of 3.7%. Let's see how things are
shaping up for this announcement.
Factors Influencing This Quarter
Urban Outfitters is concentrating on store openings, growing
wholesale operations, technology enhancements and merchandising
improvements. However, fashion obsolescence remains the key concern
for the business model, which includes a sustained focus on product
and design innovation. Moreover, the company's expansion in regions
where it already has a presence could cannibalize its sales
performance and lower traffic count at its existing stores in the
Our proven model does not conclusively show that Urban
Outfitters is likely to beat earnings estimates this quarter. This
is because a stock needs to have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. This is not the
case here, as you will see below.
Earnings ESP for Urban Outfitters is -2.04%. This is because the
Most Accurate estimate is pegged at 48 cents, while the Zacks
Consensus Estimate stands at 49 cents.
Urban Outfitters carries a Zacks Rank #3 (Hold). Though a favorable
Zacks Rank increases the predictive power of ESP, the company's ESP
of -2.04% makes surprise prediction difficult.
Stocks That Warrant a Look
Here are some companies you may want to consider as our model
shows that these have the right combination of elements:
Chipotle Mexican Grill, Inc. (
) has an Earnings ESP of +0.79% and a Zacks Rank #1 (Strong
Abercrombie & Fitch Co. (
) has an Earnings ESP of +20.00% and a Zacks Rank #3.
GameStop Corp. (
) has an Earnings ESP of +10.53% and a Zacks Rank #3.
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