Urban Outfitters (URBN) Stock: Why It Increased Today

By Amit Chowdhry ● Mar 2, 2022
  • The Urban Outfitters, Inc. (NASDAQ: URBN) stock increased by over 5% during intraday trading today. This is why.

The Urban Outfitters, Inc. (NASDAQ: URBN) stock increased by over 5% during intraday trading today. Investors are responding positively to the company’s fourth-quarter results.

Urban Outfitters reported a Q4 EPS of $0.41, which was $0.09 less than analyst estimates of $0.50. And the revenue for the quarter came in at $1.33 billion, which was in line with the consensus.

JPMorgan analyst Matthew Boss increased the price target on Urban Outfitters to $32 from $31 while reiterating a “Neutral” rating. Boss pointed out that the outlook is looking positive. Here is what Boss wrote in a research note:

“On bottom-line flow-through, mgmt expects to realize “a meaningful portion mostly through gross profit and then earnings per share” w/ our follow-up confirming approximately 150bps of potential offsets to the IMU benefit over the 3-year period (approximately 100bps MMU headwind & approximately 50bps of SG&A deleverage). Said differently, mgmt sees a path to 12.5% EBIT margins in 2024 (vs. 2021’s 9% & the model’s prior peak of low-teens in 2012/13).”

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