Urban Outfitters falls on slower January, as higher costs hit Q4 profit

Urban Outfitters

28/02/2024 12:29

** Shares of apparel retailer Urban Outfitters  URBN.O  drop
nearly 10% at $42.55 premarket
    ** Co after markets on Tuesday posted Q4 adjusted earnings
per share of 69 cents, below LSEG estimates of 73 cents
    ** Softer traffic from unfavorable weather in January
weighed on traffic and elevated expenses hurt profit, analysts
said
    ** "The earnings shortfall was largely reflective of higher
expenses during the period, while both sales and gross margin
only slightly missed expectations," Dana Telsey at Telsey
Advisory Group said
    ** TAG hikes PT to $48 from $44, maintains 'outperform'
rating on stock citing continued strength at Free People and
Anthropolgie brands
    ** Although the firm has had to discount move inventory at
the struggling Urban Outfitters nameplate, we think it is
succeeding in raising base merchandise pricing at each of its
three major brands - Morningstar analyst David Swartz 
    ** Four of 14 brokerages rate the stock "buy" or higher, 10
"hold"; their median PT is $44.50
    ** So far this year, stock up 32%
    

 (Reporting by Savyata Mishra in Bengaluru)
 ((Savyata.Mishra@thomsonreuters.com))