Urban Outfitters (NASDAQ:URBN)
Urban Outfitters, Inc. (URBN), a lifestyle specialty retail clothing company yesterday reported their third quarter 2016 financial results. Urban Outfitters reported third quarter earnings of $0.40 per share which fell short of analyst expectations of $0.44 per share. Urban Outfitters reported third quarter sales of $862 million which fell short of analyst expectations of $869 million.
Urban Outfitters, Inc. CEO’s Comments
“I am pleased to announce our teams delivered record third quarter sales,” said Richard A. Hayne, Chief Executive Officer. “These results were driven by the third consecutive quarter of positive Retail segment `comps` and continued strength in our Wholesale segment,” finished Mr. Hayne. Globe Newswire
URBN Technical Analysis
URBN opened trading yesterday at $37.73 which was up from the previous day’s trading close of $37.17. URBN closed trading yesterday at $39.01 and crashed down after market to $35.35, equivalent to a 9% decrease from the closing price. Taking a look at the daily chart we can see that the last time URBN traded below these levels we have to go back to the week of November 9th when it traded $34.44. Taking a closer look at the daily chart we can see that before the spike down URBN had been in an overall upward trend dating back to November 4th when it traded at $32.17. URBN has a float of 89.46 million shares and traded 2.25 times the normal daily trading volume on Tuesday. For trading purposes, I would like to see URBN open trading on Wednesday below $36.55 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.40 from my entry position fearing anything more than that and the stock would start to fill in the gap down.
Company Profile
Urban Outfitters, Inc., a lifestyle specialty retail company, engages in the retail and wholesale of general consumer products. It operates through two segments, Retail and Wholesale. The company retails women’s and men’s fashion apparel, intimates, footwear, beauty and accessories, home goods, activewear and gear, and electronics, as well as a mix of apartment wares and gifts for young adults aged 18 to 28 under the Urban Outfitters brand; and assortment, including women’s casual apparel and accessories, intimates, shoes, beauty, home furnishings, and various gifts and decorative items for women aged 28 to 45 under the Anthropologie brand. It also offers a collection of heirloom quality wedding gowns, bridesmaid frocks, party dresses, assorted jewelry, headpieces, footwear, lingerie, and decorations under the Bhldn brand; and lifestyle home and garden products, antiques, live plants, flowers, wellness products, and accessories under the Terrain brand, as well as operates Terrain garden centers that offer full service restaurant and coffee bar services. In addition, the company operates Free People retail stores that provide merchandise mix of casual women’s apparel, intimates, shoes, accessories, activewear, home products, and gifts for women aged 25 to 30.
It serves its customers directly through retail stores, Websites, mobile applications, catalogs, and customer contact centers. As of March 7, 2016, the company operated 240 Urban Outfitters stores; and 218 Anthropologie Group stores comprising Anthropologie, Bhldn, and Terrain brands in the United States, Canada, and Europe, as well as 114 Free People stores in the United States and Canada. It also engages in the wholesale business under the Free People brand that designs, develops, and markets young women’s contemporary casual apparel and shoes to approximately 1,800 specialty stores and select department stores worldwide. The company was founded in 1970 and is based in Philadelphia, Pennsylvania.