Sterne Agee CRT Loweres Price Target on Urban Outfitters (URBN) Following Q1 EPS Miss

Sterne Agee CRT reiterates a Neutral rating on Urban Outfitters, Inc. (NASDAQ: URBN), and lowered the price target to $34.00 (from $46.00), following Q1 EPS Miss. URBN reported Q1 EPS of $0.25, which comes below the Street's $0.30
estimate.

Sterne Agee CRT analyst Ike Boruchow commented on URBN, saying, "URBN joins the list of retailers that have missed recently elevated expectations this EPS season, leading to a sharp sell-off in shares. The company missed Q1 sales and EPS, as a material slowdown at Anthro in April weighed on performance and led to elevated inventory levels to end the quarter. To that point, management took a more cautious stance on the concept’s trajectory (talking down Q2 sales and margins), which is offsetting ongoing improvements at the UO brand. While the UO turn is gaining more credibility, the market is likely to focus on the sudden slowdown at the high-margin Anthro business, and with 2H guidance implying a meaningful improvement in margins, it is difficult to get comfortable with the direction of EPS here."

For an analyst ratings summary and ratings history on Urban Outfitters, Inc. click here. For more ratings news on Urban Outfitters, Inc. click here.

Shares of Urban Outfitters, Inc. closed at $40.72 yesterday.

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