We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Urban Outfitters (URBN) Falls on Declining Q2 Comps Trend
Read MoreHide Full Article
Shares of Urban Outfitters Inc. (URBN - Free Report) fell nearly 8% on Jun 9, in after-hours trading session after the company mentioned in a SEC filing yesterday that the comparable sales for the current quarter are deteriorating. So far in the second quarter of fiscal 2017, comparable retail segment net sales have declined by mid-single digit.
Analysts hinted that the company may report negative comparable sales in the fiscal second quarter as against a 4% increase in the year-ago quarter, if the downtrend continues. Comparable retail segment net sales, including the comparable direct-to-consumer channel, inched up 1% in the fiscal first quarter.
Nevertheless, Urban Outfitters is expected to witness long-term growth on the back of new store openings, increase in direct penetration, growing wholesale operations, technology advancements and merchandising improvements. We also believe that better product execution and effective inventory management will help augment performance. Management is making all possible efforts to enhance the performance of its brands through store refurbishment and by introducing more compelling assortments.
The company is also strategically investing in shop-in-shops. Urban Outfitters remains rational in opening new stores. The retailer opened 46, 57 and 49 stores in fiscal 2011, 2012 and 2013, respectively. It opened 38 new stores in both fiscal 2014 and 2015, and 31 in fiscal 2016. Management plans to open approximately 24 net new outlets in fiscal 2017.
Urban Outfitters currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the retail space include Destination XL Group, Inc. (DXLG - Free Report) , The Children's Place, Inc. (PLCE - Free Report) and Perry Ellis International Inc. . All these stocks hold Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Urban Outfitters (URBN) Falls on Declining Q2 Comps Trend
Shares of Urban Outfitters Inc. (URBN - Free Report) fell nearly 8% on Jun 9, in after-hours trading session after the company mentioned in a SEC filing yesterday that the comparable sales for the current quarter are deteriorating. So far in the second quarter of fiscal 2017, comparable retail segment net sales have declined by mid-single digit.
Analysts hinted that the company may report negative comparable sales in the fiscal second quarter as against a 4% increase in the year-ago quarter, if the downtrend continues. Comparable retail segment net sales, including the comparable direct-to-consumer channel, inched up 1% in the fiscal first quarter.
Nevertheless, Urban Outfitters is expected to witness long-term growth on the back of new store openings, increase in direct penetration, growing wholesale operations, technology advancements and merchandising improvements. We also believe that better product execution and effective inventory management will help augment performance. Management is making all possible efforts to enhance the performance of its brands through store refurbishment and by introducing more compelling assortments.
The company is also strategically investing in shop-in-shops. Urban Outfitters remains rational in opening new stores. The retailer opened 46, 57 and 49 stores in fiscal 2011, 2012 and 2013, respectively. It opened 38 new stores in both fiscal 2014 and 2015, and 31 in fiscal 2016. Management plans to open approximately 24 net new outlets in fiscal 2017.
Urban Outfitters currently has a Zacks Rank #3 (Hold).
URBAN OUTFITTER Price
URBAN OUTFITTER Price | URBAN OUTFITTER Quote
Stocks to Consider
Some better-ranked stocks in the retail space include Destination XL Group, Inc. (DXLG - Free Report) , The Children's Place, Inc. (PLCE - Free Report) and Perry Ellis International Inc. . All these stocks hold Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>