Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Urban Outfitters Inc. (URBN - Analyst Report) in a recent regulatory filing stated that so far in the second quarter of fiscal 2014, it has been witnessing high single-digit growth in comparable retail segment net sales.

Urban Outfitters’ initiatives to optimize inventory level and focus on increasing customer count through store expansion, online and mobile marketing endeavors and expansion of direct-to-consumer business have paid off well amid the sluggish economic environment.

This Zacks Rank #3 (Hold) stock posted better-than-expected first-quarter fiscal 2014 earnings. The quarterly earnings of 32 cents a share surpassed the Zacks Consensus Estimate of 29 cents and jumped 39.1% year over year.

Total net sales of Urban Outfitters climbed 14% to $648.2 million during the first quarter, reflecting healthy performance of its Direct-to-Consumer business coupled with sturdy sales through new store openings and double-digit growth at wholesale operations. Despite robust sales results, it missed the Zacks Consensus Estimate of $650 million.

Going forward, Urban Outfitters is optimistic that fiscal 2014 will present considerable opportunity for gross-margin improvement. The company expects to enhance margins by approximately 50 basis points through improvements in brands and lower markdowns.

We expect Urban Outfitters to sustain its growth momentum going forward on the back of new store openings, increase in direct penetration, growing wholesale operations, technology advancements and merchandising improvements.

Other Stocks to Consider

Until any further upward revision in the Zacks Rank of Urban Outfitters, the other stock worth considering in the non-food retail, wholesale sector includes Big 5 Sporting Goods Corp. (BGFV - Analyst Report), which holds a Zacks Rank #1 (Strong Buy) and is expected to continue with its upbeat performance. The Gap, Inc. (GPS - Analyst Report) and Cabela's Incorporated (CAB - Analyst Report), carrying a Zacks Rank #2 (Buy) are also worth considering.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
BITAUTO HOLD BITA 35.33 +14.82%
ANI PHARMACE ANIP 24.79 +14.66%
E HOUSECHINA EJ 10.99 +9.24%
CANADIAN SOL CSIQ 26.97 +7.15%
INTERNATIONA ICAGY 33.30 +5.38%