Barclays Maintains an 'Overweight' on Urban Outfitters (URBN); Adjusting Back Half FY11 Estimates, but Continue to Believe in 2012
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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 maintains an 'Overweight' on Urban Outfitters, Inc. (NASDAQ: URBN) price target of $32.00.
Barclays analyst says, "We are lowering our EPS estimates - 3Q FY11 to $0.33 from $0.34, 4Q to $0.44 from $0.48 and full-year 2011 to $1.35 from $1.40, due to our belief that sales trends may have slowed slightly at Anthropologie, we think sweaters are a miss for the fall season and we think URBN will work hard to end the year in a clean inventory position. As a result, we are now modeling the Anthropologie business down 7% versus our previous estimate of down low to mid single digits, we are modeling a 460 basis point gross margin hit in 3Q to 36.6%, vs our previous estimate of a 450bp hit, and we are modeling a 320bp gross margin hit in 4Q to 36.4%, vs our previous estimate of a 210bp hit. We are maintaining our FY12 EPS at $1.75, as we continue to believe URBN is well positioned for a turn in 2012, with multiple catalysts pointing to 1Q FY12, including the impact of new talent, improved inventory management (expected up low to mid single/foot, vs up 12% per foot going into 3Q), and easing comp and margin comparisons."
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 $23.48 yesterday.
Barclays analyst says, "We are lowering our EPS estimates - 3Q FY11 to $0.33 from $0.34, 4Q to $0.44 from $0.48 and full-year 2011 to $1.35 from $1.40, due to our belief that sales trends may have slowed slightly at Anthropologie, we think sweaters are a miss for the fall season and we think URBN will work hard to end the year in a clean inventory position. As a result, we are now modeling the Anthropologie business down 7% versus our previous estimate of down low to mid single digits, we are modeling a 460 basis point gross margin hit in 3Q to 36.6%, vs our previous estimate of a 450bp hit, and we are modeling a 320bp gross margin hit in 4Q to 36.4%, vs our previous estimate of a 210bp hit. We are maintaining our FY12 EPS at $1.75, as we continue to believe URBN is well positioned for a turn in 2012, with multiple catalysts pointing to 1Q FY12, including the impact of new talent, improved inventory management (expected up low to mid single/foot, vs up 12% per foot going into 3Q), and easing comp and margin comparisons."
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 $23.48 yesterday.
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