Urban Outfitters Inc
) announced that its board of directors has approved a new share
buyback program that will enable the company to reward its
shareholders well. The approval gives Urban Outfitters the
authorization to repurchase up to $10 million worth of
Urban Outfitters possesses a debt-free balance sheet with cash
and cash equivalents of $298.5 million at the end of the recently
reported second-quarter fiscal 2014. The company has also been
actively managing its capital and returning much of its free cash
via share repurchases.
During fiscal 2012, the company repurchased 20.5 million
shares, aggregating $538 million, marking the completion of the
share repurchase authorization.
This Zacks Rank #3 (Hold) stock saw a significant rise in
profits in second-quarter fiscal 2014. Urban Outfitters' bottom
line jumped 21.4% to 51 cents per share, while the top line
increased 12.2% to $758.5 million during the quarter.
Urban Outfitters' initiatives to optimize inventory levels 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 a sluggish
The company is optimistic that fiscal 2014 will present
considerable opportunity for gross-margin improvement. The
company expects to enhance margins by at least 50 basis points
for the second half of fiscal 2014 through improvements in brands
and lower markdowns.
Other Stocks to Consider
However, until any further upward revision in the Zacks Rank
on Urban Outfitters, the other stock worth considering in the
non-food retail sector includes
Citi Trends, Inc
), which holds a Zacks Rank #1 (Strong Buy).
The Men's Wearhouse, Inc
), both of which carry a Zacks Rank #2 (Buy) are also worth
CITI TRENDS INC (CTRN): Free Stock Analysis
GENESCO INC (GCO): Free Stock Analysis Report
MENS WEARHOUSE (MW): Free Stock Analysis
URBAN OUTFITTER (URBN): Free Stock Analysis
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