Wunderlich Sees Urban Outfitters Inc. FY16 Turnaround

Urban Outfitters Inc.'s

holiday sales results suggest the apparel retailer could hit a turnaround sooner than expected, an analyst said Friday. December same-store sales grew 4 percent at the company, which operates its namesake chain plus Anthropologie Group and Free People clothing stores. The namesake chain increased December comps 1 percent, while Free People grew 17 percent and Anthropologie increased 5 percent. Each measure included e-commerce. Wunderlich's Eric Beder said recent results make him "even more confident" the company will see a turnaround during fiscal 2016 that could result in strong profit growth earlier than he previously expected. Beder maintained a Buy rating and $42 target. The company's Urban Outfitters outlets, aimed at late teens and early 20s shoppers, hadn't posted growth in same-store sales in six quarters. Beder hadn't expected positive results for the unit until the third calendar quarter of 2015. Free Peoples targets women in their 20s while Anthropologie is aimed at those up to age 45. Beder said recent results present reasons to buy the shares "aggressively" in the near term. Urban Outfitter's business model "remains among the best in the specialty retailing space," Beder said. The company's shares gained Thursday but traded recently at $36.39, down $0.30 cents.