Urban Outfitters Announces Share Buyback - Analyst Blog

By
A A A

Urban Outfitters Inc . ( URBN ) 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 shares.

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 economic environment.

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 . ( CTRN ), which holds a Zacks Rank #1 (Strong Buy). Genesco Inc . ( GCO ) and The Men's Wearhouse, Inc . ( MW ), both of which carry a Zacks Rank #2 (Buy) are also worth considering.



CITI TRENDS INC (CTRN): Free Stock Analysis Report

GENESCO INC (GCO): Free Stock Analysis Report

MENS WEARHOUSE (MW): Free Stock Analysis Report

URBAN OUTFITTER (URBN): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: CTRN , GCO , MW , URBN

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Can You Trust CarFax?
Can You Trust CarFax?               

Stocks

Referenced

Most Active by Volume

164,810,018
  • $16.16 ▲ 4.12%
50,233,746
  • $55.89 ▲ 4.66%
38,892,062
  • $37 ▲ 5.35%
36,824,964
  • $35.15 ▲ 1.88%
34,222,883
  • $9.74 ▲ 6.22%
32,620,827
  • $100.58 ▲ 0.01%
29,001,008
  • $30.10 ▼ 0.76%
25,347,187
  • $8.25 ▲ 1.48%
As of 8/21/2014, 04:03 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com