Barclays Maintains an 'Overweight' on Urban Outfitters (URBN); Comps Up MSD Quarter-to-Date

Barclays maintains an 'Overweight' on Urban Outfitters, Inc. (NASDAQ: URBN) price target of $32.00.

Barclays analyst says, "We estimate that total company comps are +5% and that both the Anthropologie and Urban Outfitters brands are in line with the total company comp. Our sense is the Direct business is quite strong and the store comp is likely slightly negative. The quarter-to-date results indicate an increase in both the two and three-year run rates versus Q3. We note November was the toughest compare of the quarter and January was the easiest."

"We believe Urban Outfitters business continues to make progress, that sales picked up in the first 2 weeks of November, that the business had a strong Black Friday, and that business continues to be good in December....However, it is possible URBN will move through clearance before January, which could negatively impact comp. We think the cost of the promotions was greater than we anticipated; thus, while we are raising our comp and spread assumptions, we are lowering our gross margin and lowering our Q4 estimate accordingly from $0.38 to $0.36. We are maintaining our 2012 estimate at $1.75."

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 $26.46 yesterday.

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