Urban Outfitters Inc.
) in a recent regulatory filing stated that so far in the second
quarter of fiscal 2014, it has been witnessing high single-digit
growth in comparable retail segment net sales.
Urban Outfitters' initiatives to optimize inventory level and
focus on increasing customer count through store expansion,
online and mobile marketing endeavors and expansion of
direct-to-consumer business have paid off well amid the sluggish
This Zacks Rank #3 (Hold) stock posted better-than-expected
first-quarter fiscal 2014 earnings. The quarterly earnings of 32
cents a share surpassed the Zacks Consensus Estimate of 29 cents
and jumped 39.1% year over year.
Total net sales of Urban Outfitters climbed 14% to $648.2
million during the first quarter, reflecting healthy performance
of its Direct-to-Consumer business coupled with sturdy sales
through new store openings and double-digit growth at wholesale
operations. Despite robust sales results, it missed the Zacks
Consensus Estimate of $650 million.
Going forward, Urban Outfitters is optimistic that fiscal 2014
will present considerable opportunity for gross-margin
improvement. The company expects to enhance margins by
approximately 50 basis points through improvements in brands and
We expect Urban Outfitters to sustain its growth momentum
going forward on the back of new store openings, increase in
direct penetration, growing wholesale operations, technology
advancements and merchandising improvements.
Other Stocks to Consider
Until any further upward revision in the Zacks Rank of Urban
Outfitters, the other stock worth considering in the non-food
retail, wholesale sector includes
Big 5 Sporting Goods Corp
), which holds a Zacks Rank #1 (Strong Buy) and is expected to
continue with its upbeat performance.
The Gap, Inc
), carrying a Zacks Rank #2 (Buy) are also worth considering.
BIG 5 SPORTING (BGFV): Free Stock Analysis
CABELAS INC (CAB): Free Stock Analysis Report
GAP INC (GPS): Free Stock Analysis Report
URBAN OUTFITTER (URBN): Free Stock Analysis
To read this article on Zacks.com click here.