Urban Outfitters Commits to Review Amid Brick-and-Mortar Struggles




Urban Outfitters (NASDAQ:URBN) is a Philadelphia-based company that is engaged in the retail and wholesale of general consumer products. Its stock has dipped 4.5% week-over-week as of close on February 28, 2024, due to a post-earnings dip. However, shares are still up 18% so far in 2024. The stock has surged 55% year-over-year at the time of this writing.

This company released its fourth quarter (Q4) and full-year fiscal 2023 earnings on February 27, 2024. In Q4 FY2023, Urban Outfitters delivered total company net sales of $1.38 billion – up from $1.33 billion in the fourth quarter of fiscal 2022. Anthropologie Group and Urban Outfitters led the way with over $1 billion in total net sales. Meanwhile, the retail segment generated $1.28 billion compared to $1.25 billion in the prior year.

For the full-year, Urban Outfitters posted total net sales of $4.79 billion. That was up from $4.54 billion in the previous year. The retail segment generated $4.41 billion of total sales – up from $4.24 billion in the previous year.

Shares of Urban Outfitters suffered a drop after analysts were disappointed with its recent earnings. Comparable sales fell 13.6% compared to the previous year at its namesake location. This has forced a strategic review by management. Investors will want to monitor its progress in the quarters to come.

Urban Outfitters stock currently possesses a solid price-to-earnings ratio of 13. Meanwhile, its earnings are also forecast to deliver growth going forward. These factors, combined with a strong balance sheet, make Urban Outfitters a stock to watch as its leadership reviews its options.



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