Urban Outfitters, Inc. (NASDAQ: URBN)
reported disappointing
Q3 results, with a marked decline in comp and margin at Anthropologie. “With low visibility as to when trends will stabilize in
apparel and ultimately improve, we remain on the sidelines,” MKM Partners’ Roxanne Meyer said in a report. She maintains a Neutral
rating on the company, while reducing the fair value estimate from $36 to $35.
Urban Outfitters reported its Q3 EPS at $0.40, missing the MKM estimate of $0.46 and the Street's $0.44. The shortfall was
mainly driven by a gross margin miss, analyst Meyer mentioned. She added, “To a lesser extent, earnings were negatively impacted by
a sales shortfall and a higher SG&A ratio, offset by a lower tax rate and higher other income.”
Softness At Anthropologie
The retail segment comp came in at 1 percent, below Street expectations. The Urban Outfitters brand generated 5.2 percent comp
growth, but this was offset partially by softness at Anthropologie, which declined
2.7 percent, and Free People, which was down 1.5 percent. The analyst commented that the turn at Anthropologie seems to have
stalled.
Referring to reasons to be cautions, Meyer said that trends at Anthropologie “could remain sluggish well into 2017.” She added
that Anthropologie seems to have “a fashion problem in tops vs. being a victim of a mega-fashion shift (that is said to be 3–4
years in the making).”
At last check, Urban Outfitters was down 9.64 percent at $35.25.
Latest Ratings for URBN
Date |
Firm |
Action |
From |
To |
Nov 2016 |
Wunderlich |
Downgrades |
Buy |
Hold |
Nov 2016 |
Morgan Stanley |
Downgrades |
Overweight |
Equal-Weight |
Nov 2016 |
Citigroup |
Upgrades |
Neutral |
Buy |
View More Analyst Ratings for
URBN
View the Latest Analyst Ratings
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