Back to top

Analyst Blog

Urban Outfitters Inc. (URBN - Analyst Report) announced that its board of directors has approved a new share buyback program that will enable the company to reward its shareholders well. The approval gives Urban Outfitters the authorization to repurchase up to $10 million worth of shares.

Urban Outfitters possesses a debt-free balance sheet with cash and cash equivalents of $298.5 million at the end of the recently reported second-quarter fiscal 2014. The company has also been actively managing its capital and returning much of its free cash via share repurchases.

During fiscal 2012, the company repurchased 20.5 million shares, aggregating $538 million, marking the completion of the share repurchase authorization.

This Zacks Rank #3 (Hold) stock saw a significant rise in profits in second-quarter fiscal 2014. Urban Outfitters’ bottom line jumped 21.4% to 51 cents per share, while the top line increased 12.2% to $758.5 million during the quarter.

Urban Outfitters’ initiatives to optimize inventory levels 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 a sluggish economic environment.

The company is optimistic that fiscal 2014 will present considerable opportunity for gross-margin improvement. The company expects to enhance margins by at least 50 basis points for the second half of fiscal 2014 through improvements in brands and lower markdowns.

Other Stocks to Consider

However, until any further upward revision in the Zacks Rank on Urban Outfitters, the other stock worth considering in the non-food retail sector includes Citi Trends, Inc. (CTRN - Analyst Report), which holds a Zacks Rank #1 (Strong Buy). Genesco Inc. (GCO - Snapshot Report) and The Men's Wearhouse, Inc. (MW - Snapshot Report), both of which carry 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

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
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%