Teen apparel retailer Urban Outfitters’ (NASDAQ:URBN) stock has been inching slowly and steadily back after its surprising CEO exit, which resulted in Urban’s stock crashing by nearly 20%. Urban has gained roughly 13% since its crash landing on January 11th and with the stock looking good in terms of relative performance with its peers such as Aeropostale (NYSE:ARO), Abercrombie & Fitch (NYSE:ANF), American Eagle Outfitters (NYSE:AEO) and Gap Inc. (NYSE:GPS), we expect a further upside to Urban’s current market price.
- Why Has Urban Outfitters’ Stock Price Risen 66% In 2016?
- Higher Comparable Sales Helps Urban Outfitters Beat Consensus Estimates
- How Will Urban Outfitters Perform In The Second Quarter Of Its FY 2017?
- How Has Urban Outfitters Revenue Composition Changed Over The Last Three Years?
- What Are The Changes Urban Outfitters Is Implementing To Differentiate Itself?
- Why Is Urban Outfitters Increasing Its Store Count While Its Peers Are Cutting Down?
So what is driving Urban’s recovery
Though Urban’s stock plummeted after the resignation of its CEO Glen T. Senk and the market’s apprehensions regarding co-founder Richard Hayne’s appointment as Senk’s replacement, the company has been gaining steadily after January 11th. Some analysts are now taking the view that Haynes’ appointment might be even better for the company because of his experience and influence.
The company’s solid performance during the 2011 holidays and a strong lineup of merchandise for the spring season is also contributing to Urban’s recovery story. Additionally, the improvement in consumer sentiment has also resulted in growth of 2.1% in consumer spending, which has benefited apparel retailers across the board.