Why Has Urban Outfitters’ Stock Price Risen 66% In 2016?
Urban Outfitters‘ (NASDAQ:URBN) stock price has been soaring since the beginning of the year, rising over 66%. Till the fourth quarter of last year, the company was failing to meet revenue expectations, which wreaked havoc on its share price. Further, in the third quarter of last year, the unexpected purchase of a pizza chain sent the stock price tumbling further to $20. The company has turned around its business, subsequently, and this is reflected in the rising share price of the company. This has been primarily driven by the improving comparable sales and operating margin.
See our complete analysis for Urban Outfitters
In the recent second quarter, the company continued its streak of positive comparable sales, when it increased 1%, with those of its namesake brand climbing 5%. However, this was offset by flat comps at Free People, and a 3% decline at Anthropologie. The latter brand has been pulling the company down in recent times, and if the company wants to continue to do well in the future, further steps need to taken to reinvigorate the brand.
Urban Outfitters has also been working hard to improve its gross margins. This has been done by cutting back on the promotions and discounts it had been offering to consumers. In the recently released second quarter results, the company announced a 179 basis points improvement in the margin. This coupled with a rise in comps has been quite impressive, as it is usually difficult to increase sales without offering the markdowns the customers have become used to.
Have more questions about Urban Outfitters? See the links below:
- 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?
- Earnings Review: Why Were Urban Outfitters’ Results Impressive?
- What Is Urban Outfitters’ Revenue & Net Income Breakdown In Terms of Different Operating Segments?
- How Has Urban Outfitters’ Revenue Composition Changed In The Last Five Years?
- What Is Urban Outfitters’ Fundamental Value Based On Expected 2016 Results?
- Up 52% YTD, Where Is Urban Outfitters Stock Headed?
- Urban Outfitters Stock To Likely See Little Movement Post Q2
- Urban Outfitters’ Stock To Likely See Little Movement Past Q1
- What’s Happening With Urban Outfitters’ Stock?
- Will Urban Outfitters Stock Move Lower Post Fiscal Q2 Results?
- What To Watch For Urban Outfitters Stock Past Earnings?
Notes:
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap |More Trefis Research