Clothing and accessories retailer Urban Outfitters (NASDAQ:URBN) will be reporting earnings tomorrow after market hours. Here's what to expect.

Last quarter Urban Outfitters reported revenues of $1.28 billion, up 9% year on year, beating analyst revenue expectations by 1.5%. It was a strong quarter for the company, with EPS and free cash flow exceeding expectations, driven by its outperformance in same-store sales and strong improvement in gross margin.

Is Urban Outfitters buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Urban Outfitters's revenue to grow 8.2% year on year to $1.50 billion, improving on the 3.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.73 per share.

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates twice over the last two years.

Looking at Urban Outfitters's peers in the apparel and footwear retail segment, only Boot Barn has so far reported results, delivering top-line growth of 1.1% year on year, missing analyst estimates by 1.5%. The stock traded down 6.2% on the results.

There has been positive sentiment among investors in the apparel and footwear retail segment, with the stocks up on average 8% over the last month. Urban Outfitters is up 15.4% during the same time, and is heading into the earnings with analyst price target of $41.3, compared to share price of $45.1.

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