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Urban Outfitters Up More Than 30% This Year: Here???s Why
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Shares of Urban Outfitters, Inc. (URBN - Free Report) have risen around 31% year to date, outperforming the industry’s gain of 0.2% and the overall sector’s 13.4%. We believe new store openings, increased digital penetration, merchandising improvement and international expansion bode well. Management is also making all possible efforts to enhance the performance of brands through store refurbishment and by bringing in more compelling assortments.
Being a multi-brand and multi-channel retailer, this Zacks Rank #1 (Strong Buy) company offers flexible merchandising strategy. The company also has a significant domestic and international presence with rapidly expanding e-commerce activities. The company is focused on improving comparable-store sales performance, sustaining investments in direct-to-consumer business, enhancing productivity in existing channels, adding new brands and optimizing inventory level.
The company made an unprecedented move by acquiring Philadelphia’s The Vetri Family group of restaurants, including the Pizzeria Vetri chain. The attempt is seen as part of the company's strategy to target and attract millennials to the stores.
Further, to expand reach, Anthropologie and Nordstrom entered into a partnership, whereby more than 200 items from Anthropologie Home are now available at select Nordstrom full-line stores and on Nordstrom.com. The Anthropologie Home collection offers categories like kitchen, dining and entertaining, bed and bath textiles, room decor, stationery and hardware.
The company is rational about opening stores. During fiscal 2018, the company opened 18 new outlets — eight Free People stores, five Urban Outfitters stores, four Anthropologie Group stores and one Beverage restaurant. The company shuttered 11 stores — three Anthropologie Group stores, two Urban Outfitters outlets, three Food and Beverage restaurants and three Free People stores — in the same time frame.
During the first quarter of fiscal 2019, the company opened four new locations — two Free People stores and two Urban Outfitters outlets. The company also shuttered one Urban Outfitters outlet. Encouragingly, the company plans to open 18 new stores and intends to close 10 locations during fiscal 2019.
Apart from these, Urban Outfitters delivered solid top and bottom lines, when it last reported first-quarter fiscal 2019 results. Notably, the company posted earnings per share of 38 cents that improved sharply from 10 cents reported a year ago. Net sales of $855.7 million were up 12.4% on robust performance by its Urban Outfitters, Anthropologie Group and Free People brands.
On top of these, first-quarter fiscal 2019 marked the third straight quarter when the company witnessed comparable sales growth. Comparable Retail Segment net sales jumped 10% buoyed by double-digit growth in the digital channel and increased retail store sales. This follows an increase of 4% and 1% in the preceding two quarters. Meanwhile, comparable retail segment net sales rose 15% at Free People, 10% at the Anthropologie Group and 8% at Urban Outfitters. Management hinted that based on current sales trends, it expects second-quarter sales comps to be almost in line with the first-quarter level.
Burlington Stores, Inc. (BURL - Free Report) has a long-term earnings growth rate of 18.1% and carries a Zacks Rank #2 (Buy).
Fossil Group (FOSL - Free Report) delivered an average positive earnings surprise of 54.1% in the trailing four quarters. The Zacks Rank #2 company has a long-term earnings growth rate of 5%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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Urban Outfitters Up More Than 30% This Year: Here???s Why
Shares of Urban Outfitters, Inc. (URBN - Free Report) have risen around 31% year to date, outperforming the industry’s gain of 0.2% and the overall sector’s 13.4%. We believe new store openings, increased digital penetration, merchandising improvement and international expansion bode well. Management is also making all possible efforts to enhance the performance of brands through store refurbishment and by bringing in more compelling assortments.
Being a multi-brand and multi-channel retailer, this Zacks Rank #1 (Strong Buy) company offers flexible merchandising strategy. The company also has a significant domestic and international presence with rapidly expanding e-commerce activities. The company is focused on improving comparable-store sales performance, sustaining investments in direct-to-consumer business, enhancing productivity in existing channels, adding new brands and optimizing inventory level.
The company made an unprecedented move by acquiring Philadelphia’s The Vetri Family group of restaurants, including the Pizzeria Vetri chain. The attempt is seen as part of the company's strategy to target and attract millennials to the stores.
Further, to expand reach, Anthropologie and Nordstrom entered into a partnership, whereby more than 200 items from Anthropologie Home are now available at select Nordstrom full-line stores and on Nordstrom.com. The Anthropologie Home collection offers categories like kitchen, dining and entertaining, bed and bath textiles, room decor, stationery and hardware.
The company is rational about opening stores. During fiscal 2018, the company opened 18 new outlets — eight Free People stores, five Urban Outfitters stores, four Anthropologie Group stores and one Beverage restaurant. The company shuttered 11 stores — three Anthropologie Group stores, two Urban Outfitters outlets, three Food and Beverage restaurants and three Free People stores — in the same time frame.
During the first quarter of fiscal 2019, the company opened four new locations — two Free People stores and two Urban Outfitters outlets. The company also shuttered one Urban Outfitters outlet. Encouragingly, the company plans to open 18 new stores and intends to close 10 locations during fiscal 2019.
Apart from these, Urban Outfitters delivered solid top and bottom lines, when it last reported first-quarter fiscal 2019 results. Notably, the company posted earnings per share of 38 cents that improved sharply from 10 cents reported a year ago. Net sales of $855.7 million were up 12.4% on robust performance by its Urban Outfitters, Anthropologie Group and Free People brands.
On top of these, first-quarter fiscal 2019 marked the third straight quarter when the company witnessed comparable sales growth. Comparable Retail Segment net sales jumped 10% buoyed by double-digit growth in the digital channel and increased retail store sales. This follows an increase of 4% and 1% in the preceding two quarters. Meanwhile, comparable retail segment net sales rose 15% at Free People, 10% at the Anthropologie Group and 8% at Urban Outfitters. Management hinted that based on current sales trends, it expects second-quarter sales comps to be almost in line with the first-quarter level.
3 Other Retail Stocks Hogging the Limelight
Shoe Carnival, Inc. (SCVL - Free Report) has a long-term earnings growth rate of 12% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Burlington Stores, Inc. (BURL - Free Report) has a long-term earnings growth rate of 18.1% and carries a Zacks Rank #2 (Buy).
Fossil Group (FOSL - Free Report) delivered an average positive earnings surprise of 54.1% in the trailing four quarters. The Zacks Rank #2 company has a long-term earnings growth rate of 5%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>