Urban Outfitters, Inc.

Urban Outfitters, Inc (URBN - Analyst Report) recently announced one of the best quarters in its history, including the fourth earnings surprise in as many quarters. The company is trading just under its brand new 52-week high with a PEG ratio of 1.0.

Company Description

Urban Outfitters, Inc operates as a retailer through Urban Outfitter and Anthropologie, as well as a wholesaler through Free People. Each brand sells an array of clothing, home furnishings, and accessories through its own stores, catalogs, or web site.

The company has over 200 stores between its brands and ships to more than 100 countries. The Philadelphia based company carries a market cap of $5.7 billion and has approximately 10,000 full or part-time employees.

A Fantastic Second Quarter

Urban Outfitters announce second-quarter for fiscal year 2009 results on August 14th that included sales of $454 million, the second best mark in the company's history. Sales were driven by a 13% increase in comparable-store sales and a 42% spike in consumer direct sales.

The announcement also included earnings per share of 33 cents or a 79% year-over-year increase, up from 19 cents. Analysts were expecting 29 cents per share, making this the fourth earnings surprise in the past four quarters.

The company also boosted its operating margin to 18.3%, up from 16.0% last quarter.

Estimates Continue to Rise

Within the last 30 days the consensus estimates for the current year and next year have risen. The current year estimate is $1.34 per share, up 9% this month.

The expected annual earnings growth and sales growth are now 25.8% and 26.6%, respectively.

New Leadership Installed at Anthropologie

On August 20th Urban Outfitters announced the new CEOs for the Anthropologie brand. The company opted for a joint leadership structure, rather than a single CEO, and promoted Wendy Wurtzburger and Wendy Brown to the new roles. Both were senior executives and have been with the company for more than 25 years, combined.

The Chart

Shares of URBN have been climbing steadily and recently set a new 52-week high of $37.09. The stock has retraced slightly, but continues to test the new high. Take a look at the chart below.

Read the full analyst report on URBN