Urban Outfitters Inc. (URBN) – Q3 2011 Earnings Preview

Urban Outfitters Inc. (URBN) is scheduled to report its earnings today, Nov 14, 2011 after market close.

In August, Urban Outfitters announced that its board of directors authorized the repurchase of an additional 10 million common shares.

For Q3 2011, I think, the company is likely to report revenue of $558.2 million, a decrease of 2.8 percent over the same quarter a year ago. Operating profit is likely to come in at $78 million, a decrease of 26.3 percent over the same quarter a year ago. Net profit is likely to come in at $50 million, compared with $73.1 million in the same quarter a year ago.

There is a non-zero probability that sales might show a lower than expected decline or flat growth, if new and non-comparable store sales (especially 10 new stores launched in the previous quarter – 4 Anthropologie stores, 4 Free People stores, and 2 Urban Outfitters stores