Urban Outfitters falls after Q2 same-store sales miss estimates

Urban Outfitters

22/08/2024 14:45

(Updates)
    ** Shares of apparel retailer Urban Outfitters  URBN.O  fall
as much as 15% to over nine-month low of $35.26 
    ** URBN's Q2 same-store sales rise 2%, but miss LSEG
estimates for a 3.1% jump, hurt by slowing demand for its
namesake brand
    ** Company's rental platform Nuuly's net sales jump 62.5% to
$90.7 mln as customers pinched by high inflation look to save
dollars through renting out clothes and accessories 
        ** URBN says company sees increase in average active
subscribers at Nuuly in the current quarter
  
        ** Q2 adj EPS of $1.24 beat Wall Street view of $1,
helped mainly by expense control 
    ** Co reports Q2 revenue of $1.35 bln; above market
estimates of $1.34 bln 
    ** At least eight brokerages slash price target on the stock
following results 
    ** Telsey Advisory Group cuts PT to $44 from $49 and says
Urban Outfitters brand remains a work in progress while Free
People and Anthropologie brands have been the pillars of
strength
    ** Three of 13 brokerages rate the stock "buy" or higher,
nine "hold" and one "sell" or lower; their median PT is $42.50
    ** Up to Wednesday's close, stock had risen 16.2% YTD

 (Reporting by Khushi Singh and Ananya Mariam Rajesh in
Bengaluru)
 ((Khushi.Singh@thomsonreuters.com;))