Skip to main content

Market Overview

The Risks To Urban Outfitters In 2017

The Risks To Urban Outfitters In 2017

Urban Outfitters, Inc. (NASDAQ: URBN) reported Q4 EPS at $0.55, missing the Street estimate of $0.56, due to lower gross margins.

Sales and margins at Anthropologie could “deteriorate meaningfully” in 2017, while there is risk at Urban Outfitters, MKM Partners’ Roxanne Meyer said in a report. She maintained a Sell rating on the company, with a price target of $20.

Looking Ahead At 2017

“Gross margin was negatively impacted [in Q4] by increased customer delivery and logistics expense rates, which we believe will likely weigh on gross margin in 2017, as well as by lower IMU [initial mark-up] and increased markdowns at both Anthropologie and Urban Outfitters (also expected to continue),” Meyer wrote.

Related Link: Risk Reward In Urban Outfitters A Perfect Fit For Your Portfolio?

Although the company announced changes to Anthropologie leadership, the impact of these will likely not be felt “until 3Q earliest and more likely in 4Q or even into 2018,” the analyst pointed out. She added that management’s projection of Anthropologie’s comp decline in Q1 being similar to that in Q4 seems optimistic.

“What is perhaps still not appreciated is the extent of sales and margin declines we could see as Anthropologie disappoints, particularly in 1H,” Meyer commented. She stated the Q4 softness at Urban Outfitters was unexpected and this could weigh on comps and margins in the first half of 2017.

Latest Ratings for URBN

Jan 2021JP MorganDowngradesNeutralUnderweight
Nov 2020Morgan StanleyMaintainsOverweight
Nov 2020Morgan StanleyMaintainsOverweight

View More Analyst Ratings for URBN
View the Latest Analyst Ratings


Related Articles (URBN)

View Comments and Join the Discussion!

Posted-In: Anthropologie MKM Partners Roxanne MeyerAnalyst Color Short Ideas Reiteration Analyst Ratings Trading Ideas Best of Benzinga

Latest Ratings

FSRMorgan StanleyMaintains40.0
MEDDA DavidsonMaintains302.0
VICRBWS FinancialMaintains120.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at