Executive Summary

• Urban Outfitters reported 2Q 2016 EPS of $0.66 versus last year’s $0.52, and beat the consensus estimate of $0.55. Reported revenues were $890.6 million, up 3% year over year and exceeded expectations of $885.9 million, driven by a wholesale net sales increase of 4%.
• The upside in the quarter was driven by somewhat better comps, but more so by lower markdowns at Urban Outfitters and Anthropologie.
• The company also saw significant growth in its emerging categories like home, beauty, intimates and music. The beauty category continued to see compounded comp growth and higher penetration in the total business.