Urban Outfitters (NASDAQ:URBN), a lifestyle specialty retail company yesterday reported their second quarter 2016 financial results. Urban reported second quarter earnings of $0.66 per share which beat analyst expectations of $0.56 per share. Urban reported second quarter revenues increased 3% to $890.6 million which beat analyst expectations of $886.8 million.
Urban Outfitters, Inc. CEO’s Comments
I am pleased to announce our teams delivered record second quarter sales and earnings per share,” said Richard A. Hayne, Chief Executive Officer. “These results were driven by a positive Retail segment ‘comp’ and substantial improvement in merchandise margins, finished Mr. Hayne. Globe Newswire
URBN Technical Analysis
URBN opened trading yesterday at $31.24, which was exactly the same as the previous days trading close of $31.24. URBN closed trading yesterday at $31.24 and spiked up after market to $34.94, equivalent to a 12% increase from the closing price. Taking a look at the daily chart we can see the last time URBN traded below these levels was on July 20th when it traded at $35.45. Taking a closer look at the daily chart we can see that URBN has been in a upward trend dating back to May 18th when it traded at $24.59. URBN has a float of 89.17 million shares and traded 1.51 times the normal daily trading volume on Tuesday. For trading purposes, I would like to see URBN open trading on Wednesday above $33.70 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.25 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
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, active wear, 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.