Barclays Reiterates an 'Overweight' on Urban Outfitters (URBN); Q1 Earnings Review
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Price: $77.81 +2.11%
Rating Summary:
15 Buy, 26 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
15 Buy, 26 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Barclays reiterates an 'Overweight' on Urban Outfitters (NASDAQ: URBN), PT $37.
Barclays analyst says, "URBN reported 1Q 2011 EPS of $0.23, better than our estimate of $0.21, but worse than consensus of $0.24. The $0.02 beat to our numbers was operating, and was due to lower SG&A. We are lowering our 2Q 2011 estimate to $0.34 from $0.40, but maintaining 2011 at $1.57, and 2012 at $2.00, due to lower-than-anticipated SG&A dollar guidance."
"The call we heard from the shorts was that the URBN business hit a wall
domestically, that it cannot comp anymore, that it is going to get hurt by rising sourcing costs in the second half, and it does not have an international growth story. Really? URBN beat market expectations as well as our comp and our EPS estimate. The two-year stacked comp improved from 13% to 15% and improved in all divisions except Anthropologie, where it remained consistent at 16%. The UK business improved each month during the quarter in both divisions, and by April, Urban UK actually out-comped the domestic business, meaning it was positive. And URBN is accelerating growth in Germany."
For more ratings news on Urban Outfitters, Inc. click here and for the rating history of Urban Outfitters, Inc. click here.
Shares of Urban Outfitters, Inc. closed at $32.29 yesterday.
Barclays analyst says, "URBN reported 1Q 2011 EPS of $0.23, better than our estimate of $0.21, but worse than consensus of $0.24. The $0.02 beat to our numbers was operating, and was due to lower SG&A. We are lowering our 2Q 2011 estimate to $0.34 from $0.40, but maintaining 2011 at $1.57, and 2012 at $2.00, due to lower-than-anticipated SG&A dollar guidance."
"The call we heard from the shorts was that the URBN business hit a wall
domestically, that it cannot comp anymore, that it is going to get hurt by rising sourcing costs in the second half, and it does not have an international growth story. Really? URBN beat market expectations as well as our comp and our EPS estimate. The two-year stacked comp improved from 13% to 15% and improved in all divisions except Anthropologie, where it remained consistent at 16%. The UK business improved each month during the quarter in both divisions, and by April, Urban UK actually out-comped the domestic business, meaning it was positive. And URBN is accelerating growth in Germany."
For more ratings news on Urban Outfitters, Inc. click here and for the rating history of Urban Outfitters, Inc. click here.
Shares of Urban Outfitters, Inc. closed at $32.29 yesterday.
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