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LZB Q1 Deep Dive: Retail Expansion and Supply Chain Initiatives Shape Outlook
LZB Q1 Deep Dive: Retail Expansion and Supply Chain Initiatives Shape Outlook

Yahoo

time15 hours ago

  • Business
  • Yahoo

LZB Q1 Deep Dive: Retail Expansion and Supply Chain Initiatives Shape Outlook

Furniture company La-Z-Boy (NYSE:LZB) reported Q1 CY2025 results topping the market's revenue expectations , with sales up 3.1% year on year to $570.9 million. The company expects next quarter's revenue to be around $500 million, close to analysts' estimates. Its non-GAAP profit of $0.92 per share was 1.1% below analysts' consensus estimates. Is now the time to buy LZB? Find out in our full research report (it's free). Revenue: $570.9 million vs analyst estimates of $558.6 million (3.1% year-on-year growth, 2.2% beat) Adjusted EPS: $0.92 vs analyst expectations of $0.93 (1.1% miss) Revenue Guidance for Q2 CY2025 is $500 million at the midpoint, roughly in line with what analysts were expecting Operating Margin: 5.2%, down from 9.1% in the same quarter last year Market Capitalization: $1.56 billion La-Z-Boy's first quarter delivered sales growth amid a challenging consumer environment, with management highlighting the benefits of new store openings and acquisitions, particularly in the Retail segment. CEO Melinda Whittington credited the company's 'vertically integrated model and agile supply chain' for enabling continued growth despite persistent economic and industry volatility. Management noted that while company-owned store sales rose, same-store sales declined, reflecting broader consumer caution. The quarter's performance was further shaped by targeted pricing actions and swift operational responses to supply chain disruptions, including storm-related factory damage. CFO Taylor Luebke emphasized that improved sourcing and lower input costs helped offset tariff impacts and cost pressures. Looking forward, La-Z-Boy's outlook is anchored by ongoing expansion of its direct-to-consumer retail footprint and a multiyear project to redesign its distribution and home delivery network. Management anticipates that continued consumer uncertainty will weigh on near-term demand, particularly impacting the Joybird online channel, but expects long-term benefits from operational investments and a refreshed brand identity. Whittington described the upcoming distribution redesign as key to supporting growth, saying it will 'cut time out of the system and less miles on product as well.' The company remains focused on agility in responding to trade policy shifts and cost inflation while maintaining prudent investment in both new stores and supply chain capabilities. Management attributed the quarter's performance to retail network growth, improved supply chain execution, and targeted pricing actions to mitigate tariff and cost pressures. Retail network expansion: New store openings and acquisitions in the company-owned Retail segment drove growth, with 11 new stores and 7 acquisitions completed over the past year. Management emphasized that direct ownership allows La-Z-Boy to control the end-to-end consumer experience and collect valuable customer insights, supporting its Century Vision strategy. Supply chain agility: The company's predominantly U.S.-based manufacturing footprint and Mexican cut-and-sew facilities allowed it to minimize tariff exposure and maintain speed to market. Management cited its quick recovery from a storm-damaged Arkansas facility as evidence of operational resilience, with only a one-week production loss. Joybird channel divergence: While physical Joybird stores showed relative strength, online sales for this segment declined. Management attributed this to greater macroeconomic sensitivity among Joybird's younger, urban customer base and is adjusting store growth plans accordingly, with 3–4 new stores planned for the coming year. Margin management: Adjusted operating margins were supported by lower input costs and improved sourcing, but offset by higher fixed costs from new store openings and incremental tariff expenses. CFO Luebke noted that continued investment in distribution redesign is expected to provide further margin benefits over time. Brand strategy evolution: La-Z-Boy is set to launch a refreshed brand identity, with updated look and tone to increase relevance in digital channels. This is part of a broader effort to modernize the brand and reach new audiences, building on the success of its 'Long Live the Lazy' campaign. La-Z-Boy's outlook is shaped by a cautious consumer environment, continued investment in retail and supply chain, and efforts to manage industry-wide cost pressures. Distribution network overhaul: The multiyear redesign of La-Z-Boy's distribution and home delivery system is expected to drive efficiency gains, reduce warehouse overhead, and improve delivery times. Management believes this project is essential for reaching long-term double-digit wholesale margins and supporting a growing retail footprint. Tariff and trade policy management: The company is actively monitoring global trade developments and leveraging its U.S.-centric supply chain to mitigate new tariffs. Targeted, nominal pricing actions and inventory strategies are in place to offset cost impacts, but management remains cautious about potential effects on consumer demand. Retail expansion and brand refresh: Continued investment in new company-owned stores and the upcoming brand identity update are central to management's growth strategy. The ability to control the in-store experience and adapt marketing for digital audiences is seen as key to gaining share in a fragmented market, though higher fixed costs and cautious consumers may present near-term challenges. In the coming quarters, the StockStory team will be watching (1) the pace and effectiveness of La-Z-Boy's distribution network redesign, (2) ongoing performance of new and acquired company-owned stores, and (3) the impact of the brand refresh on customer engagement and sales trends. Additionally, developments in tariff policy and the trajectory of consumer demand will be pivotal in assessing the company's execution against its Century Vision strategy. La-Z-Boy currently trades at $38.19, down from $38.79 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

MDLZ Q1 Deep Dive: Cocoa Inflation Drives Pricing Actions, U.S. Demand Remains Soft
MDLZ Q1 Deep Dive: Cocoa Inflation Drives Pricing Actions, U.S. Demand Remains Soft

Yahoo

time2 days ago

  • Business
  • Yahoo

MDLZ Q1 Deep Dive: Cocoa Inflation Drives Pricing Actions, U.S. Demand Remains Soft

Packaged snacks company Mondelez (NASDAQ:MDLZ) met Wall Street's revenue expectations in Q1 CY2025, but sales were flat year on year at $9.31 billion. Its non-GAAP profit of $0.74 per share was 12.2% above analysts' consensus estimates. Is now the time to buy MDLZ? Find out in our full research report (it's free). Revenue: $9.31 billion vs analyst estimates of $9.31 billion (flat year on year, in line) Adjusted EPS: $0.74 vs analyst estimates of $0.66 (12.2% beat) Adjusted EBITDA: $1.7 billion vs analyst estimates of $1.54 billion (18.2% margin, 10.6% beat) Operating Margin: 7.3%, down from 29.4% in the same quarter last year Organic Revenue rose 3.1% year on year (4.2% in the same quarter last year) Sales Volumes fell 3.5% year on year (-2.1% in the same quarter last year) Market Capitalization: $85.91 billion Mondelez's first quarter was marked by stable sales and a notable profit outperformance, leading to a positive market reaction. Management attributed the quarter's results to effective pricing strategies in response to record cocoa costs, especially within its chocolate segment. CEO Dirk Van de Put explained, 'Our top line grew 3.1% behind strong pricing execution across our chocolate business due to unprecedented input costs for cocoa.' The quarter also saw continued brand loyalty, particularly for core products like Oreo and Cadbury, despite economic pressures causing U.S. consumers to shift toward value-oriented purchases. Looking ahead, Mondelez expects ongoing macroeconomic uncertainty and elevated commodity costs to shape its performance. Management pointed to further pricing actions, product innovation, and targeted activations as key levers for growth, especially in Europe and emerging markets. CFO Luca Zaramella emphasized that 'pricing across the board, whether it is chocolate in developed and emerging markets or biscuits in emerging markets, is absolutely on track,' but cautioned that U.S. consumer confidence is unlikely to rebound quickly. The company plans to maintain agility in its strategy, focusing on both cost discipline and reinvestment should commodity pressures ease. Management cited strong pricing execution in chocolate, continued investment in brand and product innovation, and mixed geographic consumer sentiment as primary factors shaping the quarter's results and ongoing strategy. Cocoa-driven pricing actions: Mondelez implemented significant price increases in its chocolate segment to offset record cocoa costs, with management emphasizing minimal disruption and elasticities in line with expectations. The pricing strategy included tiered pack sizes and protected entry-level price points in key markets. Volume declines from elasticity and destocking: The company experienced a 3.5% volume decline, driven by consumer sensitivity to higher prices, retailer inventory reductions in North America, and seasonal timing shifts related to Easter. Management noted that U.S. biscuit volumes faced additional pressure from lower consumption and value-seeking behavior. Emerging market performance varies: While China and Brazil delivered strong results, India and Southeast Asia saw softer demand due to economic uncertainty and inflation. Management expects emerging markets to accelerate in the second half of the year through distribution gains and targeted promotions. Brand and product innovation: Mondelez launched several notable activations, including Oreo's partnership with Post Malone and the Cadbury Dairy Milk Biscoff bar. These initiatives are part of a broader effort to maintain consumer interest and drive share gains despite external pressures. Agility in cost management: The company delivered ahead-of-schedule productivity improvements, particularly in procurement, and opportunistically secured better input pricing for some commodities. Management indicated that any future margin upside from easing cocoa costs would likely be reinvested to support long-term brand health. Mondelez's outlook is guided by ongoing pricing initiatives, cost discipline, and a focus on adapting to shifting consumer sentiment across regions. Sustained pricing and RGM strategy: Management reiterated its commitment to a revenue growth management (RGM) approach—offering a range of pack sizes and price points tailored to regional consumer needs. The company expects continued pricing actions to offset commodity pressures, with elasticity and consumer response closely monitored, especially in Europe and emerging markets. Consumer confidence and U.S. demand: Mondelez remains cautious about U.S. consumer sentiment, noting ongoing value-seeking behaviors and lower frequency of snacking purchases. Management does not anticipate a near-term rebound in U.S. demand, and plans to focus on affordable formats, promotional activations, and multi-pack offerings to stabilize share and volumes. Potential margin reinvestment: Should cocoa prices moderate, management intends to reinvest some of the resulting margin improvement into brand support and innovation, rather than prioritizing short-term profit gains. This approach is designed to ensure long-term competitiveness and sustained category health. In the quarters ahead, the StockStory team will be watching (1) how effectively Mondelez sustains its pricing strategy while managing elasticity and consumer pushback, (2) whether volume trends in the U.S. biscuit and chocolate segments stabilize as retailer destocking subsides, and (3) acceleration in emerging market growth, particularly in India and China. The outcome of cocoa price movements and any resulting adjustments to reinvestment priorities will also be key indicators for the company's trajectory. Mondelez currently trades at $66.41, up from $65.58 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

Ross Stores (NASDAQ:ROST) Exceeds Q1 Expectations But Stock Drops
Ross Stores (NASDAQ:ROST) Exceeds Q1 Expectations But Stock Drops

Yahoo

time23-05-2025

  • Business
  • Yahoo

Ross Stores (NASDAQ:ROST) Exceeds Q1 Expectations But Stock Drops

Off-price retail company Ross Stores (NASDAQ:ROST) reported Q1 CY2025 results topping the market's revenue expectations , with sales up 2.6% year on year to $4.98 billion. On the other hand, next quarter's revenue guidance of $5.37 billion was less impressive, coming in 2.3% below analysts' estimates. Its GAAP profit of $1.47 per share was 2.5% above analysts' consensus estimates. Is now the time to buy Ross Stores? Find out in our full research report. Revenue: $4.98 billion vs analyst estimates of $4.96 billion (2.6% year-on-year growth, 0.5% beat) EPS (GAAP): $1.47 vs analyst estimates of $1.43 (2.5% beat) Adjusted EBITDA: $761.7 million vs analyst estimates of $710.4 million (15.3% margin, 7.2% beat) Revenue Guidance for Q2 CY2025 is $5.37 billion at the midpoint, below analyst estimates of $5.50 billion EPS (GAAP) guidance for Q2 CY2025 is $1.48 at the midpoint, missing analyst estimates by 10.3% Operating Margin: 12.2%, in line with the same quarter last year Free Cash Flow Margin: 4.1%, similar to the same quarter last year Locations: 2,205 at quarter end, up from 2,127 in the same quarter last year Same-Store Sales were flat year on year (3% in the same quarter last year) Market Capitalization: $50.21 billion Selling excess inventory or overstocked items from other retailers, Ross Stores (NASDAQ:ROST) is an off-price concept that sells apparel and other goods at prices much lower than department stores. A company's long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. With $21.26 billion in revenue over the past 12 months, Ross Stores is one of the larger companies in the consumer retail industry and benefits from a well-known brand that influences purchasing decisions. However, its scale is a double-edged sword because there are only a finite number of places to build new stores, making it harder to find incremental growth. To expand meaningfully, Ross Stores likely needs to tweak its prices or enter new markets. As you can see below, Ross Stores grew its sales at a tepid 5.8% compounded annual growth rate over the last six years (we compare to 2019 to normalize for COVID-19 impacts), but to its credit, it opened new stores and increased sales at existing, established locations. This quarter, Ross Stores reported modest year-on-year revenue growth of 2.6% but beat Wall Street's estimates by 0.5%. Company management is currently guiding for a 1.5% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 4.3% over the next 12 months, similar to its six-year rate. We still think its growth trajectory is satisfactory given its scale and indicates the market sees success for its products. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. A retailer's store count often determines how much revenue it can generate. Ross Stores sported 2,205 locations in the latest quarter. Over the last two years, it has opened new stores at a rapid clip by averaging 4.2% annual growth, among the fastest in the consumer retail sector. When a retailer opens new stores, it usually means it's investing for growth because demand is greater than supply, especially in areas where consumers may not have a store within reasonable driving distance. The change in a company's store base only tells one side of the story. The other is the performance of its existing locations and e-commerce sales, which informs management teams whether they should expand or downsize their physical footprints. Same-store sales gives us insight into this topic because it measures organic growth for a retailer's e-commerce platform and brick-and-mortar shops that have existed for at least a year. Ross Stores's demand has been spectacular for a retailer over the last two years. On average, the company has increased its same-store sales by an impressive 3.5% per year. This performance suggests its rollout of new stores is beneficial for shareholders. We like this backdrop because it gives Ross Stores multiple ways to win: revenue growth can come from new stores, e-commerce, or increased foot traffic and higher sales per customer at existing locations. In the latest quarter, Ross Stores's year on year same-store sales were flat. This was a meaningful deceleration from its historical levels. We'll be watching closely to see if Ross Stores can reaccelerate growth. We enjoyed seeing Ross Stores beat analysts' revenue, EPS, and EBITDA expectations this quarter. On the other hand, its revenue and EPS guidance for next quarter fell short of Wall Street's estimates. Overall, this was a softer quarter. The stock traded down 9% to $138.50 immediately following the results. Is Ross Stores an attractive investment opportunity at the current price? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

American Superconductor (NASDAQ:AMSC) Beats Expectations in Strong Q1, Stock Soars
American Superconductor (NASDAQ:AMSC) Beats Expectations in Strong Q1, Stock Soars

Yahoo

time22-05-2025

  • Business
  • Yahoo

American Superconductor (NASDAQ:AMSC) Beats Expectations in Strong Q1, Stock Soars

Power resiliency solutions provider American Superconductor (NASDAQ:AMSC) reported revenue ahead of Wall Street's expectations in Q1 CY2025, with sales up 58.6% year on year to $66.66 million. On top of that, next quarter's revenue guidance ($66 million at the midpoint) was surprisingly good and 8.8% above what analysts were expecting. Its non-GAAP profit of $0.12 per share was 24.1% above analysts' consensus estimates. Is now the time to buy American Superconductor? Find out in our full research report. Revenue: $66.66 million vs analyst estimates of $60.27 million (58.6% year-on-year growth, 10.6% beat) Adjusted EPS: $0.12 vs analyst estimates of $0.10 (24.1% beat) Adjusted EBITDA: $6.09 million vs analyst estimates of $2.3 million (9.1% margin, significant beat) Revenue Guidance for Q2 CY2025 is $66 million at the midpoint, above analyst estimates of $60.65 million Adjusted EPS guidance for Q2 CY2025 is $0.10 at the midpoint, below analyst estimates of $0.11 Operating Margin: 2.5%, up from -0.8% in the same quarter last year Free Cash Flow Margin: 7.9%, up from 4.6% in the same quarter last year Market Capitalization: $973.9 million Founded in 1987, American Superconductor (NASDAQ:AMSC) has shifted from superconductor research to developing power systems, adapting to changing energy grid needs and naval technology requirements. A company's long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Luckily, American Superconductor's sales grew at an incredible 28.4% compounded annual growth rate over the last five years. Its growth surpassed the average industrials company and shows its offerings resonate with customers, a great starting point for our analysis. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. American Superconductor's annualized revenue growth of 45% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. American Superconductor's recent performance shows it's one of the better Renewable Energy businesses as many of its peers faced declining sales because of cyclical headwinds. This quarter, American Superconductor reported magnificent year-on-year revenue growth of 58.6%, and its $66.66 million of revenue beat Wall Street's estimates by 10.6%. Company management is currently guiding for a 63.8% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 13.2% over the next 12 months, a deceleration versus the last two years. Despite the slowdown, this projection is healthy and suggests the market is baking in success for its products and services. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes. Although American Superconductor was profitable this quarter from an operational perspective, it's generally struggled over a longer time period. Its expensive cost structure has contributed to an average operating margin of negative 11.5% over the last five years. Unprofitable industrials companies require extra attention because they could get caught swimming naked when the tide goes out. On the plus side, American Superconductor's operating margin rose by 24.8 percentage points over the last five years, as its sales growth gave it operating leverage. Still, it will take much more for the company to show consistent profitability. This quarter, American Superconductor generated an operating profit margin of 2.5%, up 3.3 percentage points year on year. The increase was encouraging, and because its operating margin rose more than its gross margin, we can infer it was more efficient with expenses such as marketing, R&D, and administrative overhead. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. American Superconductor's full-year EPS flipped from negative to positive over the last five years. This is a good sign and shows it's at an inflection point. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For American Superconductor, its two-year annual EPS growth of 61.6% was higher than its five-year trend. We love it when earnings growth accelerates, especially when it accelerates off an already high base. In Q1, American Superconductor reported EPS at $0.12, up from $0.05 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects American Superconductor's full-year EPS of $0.63 to shrink by 15.9%. We were impressed by how significantly American Superconductor blew past analysts' revenue and EBITDA expectations this quarter. We were also excited its revenue guidance for next quarter outperformed Wall Street's estimates. On the other hand, its EPS guidance for next quarter missed. Zooming out, we think this was a solid print. The stock traded up 7.3% to $26 immediately after reporting. Indeed, American Superconductor had a rock-solid quarterly earnings result, but is this stock a good investment here? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio

Urban Outfitters (NASDAQ:URBN) Reports Upbeat Q1, Stock Soars
Urban Outfitters (NASDAQ:URBN) Reports Upbeat Q1, Stock Soars

Yahoo

time22-05-2025

  • Business
  • Yahoo

Urban Outfitters (NASDAQ:URBN) Reports Upbeat Q1, Stock Soars

Clothing and accessories retailer Urban Outfitters (NASDAQ:URBN) announced better-than-expected revenue in Q1 CY2025, with sales up 10.7% year on year to $1.33 billion. Its GAAP profit of $1.16 per share was 39.6% above analysts' consensus estimates. Is now the time to buy Urban Outfitters? Find out in our full research report. Revenue: $1.33 billion vs analyst estimates of $1.29 billion (10.7% year-on-year growth, 3% beat) EPS (GAAP): $1.16 vs analyst estimates of $0.83 (39.6% beat) Adjusted EBITDA: $165.5 million vs analyst estimates of $133.4 million (12.5% margin, 24.1% beat) Operating Margin: 9.6%, up from 6.2% in the same quarter last year Free Cash Flow was -$13.13 million, down from $17.46 million in the same quarter last year Same-Store Sales rose 4.8% year on year, in line with the same quarter last year Market Capitalization: $5.68 billion 'We are excited to announce record first quarter revenues and profits,' said Richard A. Hayne, Chief Executive Officer. Founded as a purveyor of vintage items, Urban Outfitters (NASDAQ:URBN) now largely sells new apparel and accessories to teens and young adults seeking on-trend fashion. A company's long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. With $5.68 billion in revenue over the past 12 months, Urban Outfitters is a mid-sized retailer, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale. As you can see below, Urban Outfitters's 6.2% annualized revenue growth over the last six years (we compare to 2019 to normalize for COVID-19 impacts) was tepid, but to its credit, it opened new stores and increased sales at existing, established locations. This quarter, Urban Outfitters reported year-on-year revenue growth of 10.7%, and its $1.33 billion of revenue exceeded Wall Street's estimates by 3%. Looking ahead, sell-side analysts expect revenue to grow 5.8% over the next 12 months, similar to its six-year rate. This projection is healthy and implies the market is baking in success for its products. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. The number of stores a retailer operates is a critical driver of how quickly company-level sales can grow. Urban Outfitters opened new stores quickly over the last two years, averaging 2.2% annual growth, faster than the broader consumer retail sector. When a retailer opens new stores, it usually means it's investing for growth because demand is greater than supply, especially in areas where consumers may not have a store within reasonable driving distance. Note that Urban Outfitters reports its store count intermittently, so some data points are missing in the chart below. The change in a company's store base only tells one side of the story. The other is the performance of its existing locations and e-commerce sales, which informs management teams whether they should expand or downsize their physical footprints. Same-store sales is an industry measure of whether revenue is growing at those existing stores and is driven by customer visits (often called traffic) and the average spending per customer (ticket). Urban Outfitters's demand has been spectacular for a retailer over the last two years. On average, the company has increased its same-store sales by an impressive 4.2% per year. This performance suggests its rollout of new stores is beneficial for shareholders. We like this backdrop because it gives Urban Outfitters multiple ways to win: revenue growth can come from new stores, e-commerce, or increased foot traffic and higher sales per customer at existing locations. In the latest quarter, Urban Outfitters's same-store sales rose 4.8% year on year. This performance was more or less in line with its historical levels. We were impressed by how significantly Urban Outfitters blew past analysts' EPS expectations this quarter. We were also excited its EBITDA outperformed Wall Street's estimates by a wide out, we think this quarter featured some important positives. The stock traded up 6.1% to $63.25 immediately following the results. Sure, Urban Outfitters had a solid quarter, but if we look at the bigger picture, is this stock a buy? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

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