Janney Montgomery Scott 10-Q Preview on Urban Outfitters (URBN): Expect QTD 4Q11 “Comps” to Sequentially Improve, but Margins Hit
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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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Janney Montgomery Scott maintains a 'Neutral' on Urban Outfitters, Inc. (NASDAQ: URBN) price target of $23.00.
JMS analyst says, "On Monday, December 12, 2011, after market close, we believe URBN may file its 3Q11 10-Q. Included in the Management's Discussion and Financial Analysis, the company typically has commentary on the consolidated quarter-to-date comparable retail segment trend. We believe commentary could be similar to the following: “Thus far during the fourth quarter of fiscal 2012, comparable retail segment net sales are flattish to low single-digit negative and are sequentially improved over 3Q11.” This would imply that comparable store sales (excluding direct-to-consumer, “DTC”) quarter-to-date could be in the negative mid-single-digit range. We noted significant clearance inventory at both divisions over Black Friday weekend, and a never-before-seen Black Friday percentage-off clearance promotion at the Anthropologie division that drove strong conversion. We believe the comparable retail segment net sales have accelerated from the -3% comp posted for 3Q11, but at the expense of gross margins as the company has been highly promotional quarter-to-date."
"As a result, we are lowering our EPS estimates accordingly. Our 4Q11 EPS estimate goes to $0.35 from $0.39 (versus consensus of $0.38). Our FY11 and FY12 EPS estimates go to $1.26 from $1.30 (versus consensus of $1.29) and to $1.55 from $1.61 (versus consensus of $1.61), respectively."
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 $27.16 yesterday.
JMS analyst says, "On Monday, December 12, 2011, after market close, we believe URBN may file its 3Q11 10-Q. Included in the Management's Discussion and Financial Analysis, the company typically has commentary on the consolidated quarter-to-date comparable retail segment trend. We believe commentary could be similar to the following: “Thus far during the fourth quarter of fiscal 2012, comparable retail segment net sales are flattish to low single-digit negative and are sequentially improved over 3Q11.” This would imply that comparable store sales (excluding direct-to-consumer, “DTC”) quarter-to-date could be in the negative mid-single-digit range. We noted significant clearance inventory at both divisions over Black Friday weekend, and a never-before-seen Black Friday percentage-off clearance promotion at the Anthropologie division that drove strong conversion. We believe the comparable retail segment net sales have accelerated from the -3% comp posted for 3Q11, but at the expense of gross margins as the company has been highly promotional quarter-to-date."
"As a result, we are lowering our EPS estimates accordingly. Our 4Q11 EPS estimate goes to $0.35 from $0.39 (versus consensus of $0.38). Our FY11 and FY12 EPS estimates go to $1.26 from $1.30 (versus consensus of $1.29) and to $1.55 from $1.61 (versus consensus of $1.61), respectively."
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 $27.16 yesterday.
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