UBS maintained a Neutral rating on Urban Outfitters, Inc. (NASDAQ: URBN), and cut the price target to $30.00 (from $33.00), as 2Q trends continue to decelerate. URBN lowered 2Q estimates to $0.50 from $0.57, compared to the Street's $0.58 estimate. These changes are to reflect an SSS of -3%, 50 bps of YOY gross margin erosion, and 100 bps of SG&A deleverage.

Analyst Michael Binetti commented, "In its 10Q, URBN commented that QTD 2Q SSS are running –MSD (vs UBSe/Street's +0.2% est) – likely a further deceleration from trends as of 5/18 (when the company indicated that trends were below 1Q's +1% SSS). We estimate that store-only comps are probably running in the –LDD range, which would represent a deceleration vs 1Q of approximately 5-pts and 10-pts, respectively. We note that May was the toughest compare of 2Q with June and July easing slightly."

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Shares of Urban Outfitters, Inc. closed at $27.93 yesterday.