Urban Outfitters Inc
) in a recent regulatory filing stated that so far in the third
quarter of fiscal 2014, it has been witnessing mid 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
second-quarter fiscal 2014 earnings. The quarterly earnings of 51
cents a share surpassed the Zacks Consensus Estimate of 48 cents
and jumped 21.4% year over year due to a rise in sales and higher
Total net sales of Urban Outfitters climbed 12.2% to $758.5
million during the quarter, reflecting robust performance of its
Direct-to-Consumer business coupled with sturdy sales through new
store openings and double-digit growth at its wholesale
operations. Despite robust sales results, the company missed the
Zacks Consensus Estimate of $767 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 at least
50 basis points through improvements in brands and lower
We expect Urban Outfitters to sustain its growth momentum,
going forward, on the back of new store openings, increase in
direct penetration, expanding 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 stocks worth considering in the
retail sector include
Citi Trends, Inc.
Fortune Brands Home & Security, Inc.
Lumber Liquidators Holdings, Inc.
), all sporting a Zacks Rank #1 (Strong Buy).
CITI TRENDS INC (CTRN): Free Stock Analysis
FORTUNE BRD H&S (FBHS): Free Stock Analysis
LUMBER LIQUIDAT (LL): Free Stock Analysis
URBAN OUTFITTER (URBN): Free Stock Analysis
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