Sterne Agee: Urban Outfitters to Release Results Today

In a research report published today by Sterne Agee, Urban Outfitters Inc.

is set to report its Q4 results today after market close. According to Sterne Agee, “Previously URBN reported Q4 sales at $730.6 million, up 9%, somewhat below the holiday sales gain of 11% likely due to limited clearance in January at Anthro. Comps by concept were UO at +3% unchanged from the holiday comp with Anthropologie weaker at +1%, implying January comps declined low to mid singles versus the 3% comp at holiday, and Free People up 9%. DTC gained 14% with wholesale up 3%. We lowered our estimate following the sales release to $0.26. FC estimates are higher at $0.29 within a range of $0.25-$0.36. We have estimated Q4 gross margins at 30%, down 970 bp with FC higher at 32.2%. Our outlook reflects our belief that URBNN was able to clear much of the leftover 2H merchandises in Q4 although margins were penalized.” Sterne Agee maintains its Neutral rating and $28 PT on Urban Outfitters, which closed Friday at $29.50.