Shares of Urban Outfitters Inc. (URBN) jumped 7% during after-market trading hours yesterday, following the company’s solid revenue and same-store sale results for fourth-quarter fiscal 2015 driven by strong holiday sales performance.
This specialty retailer of fashion apparel and accessories stated that net sales for the quarter climbed 12% to $1,011 million compared with $905.9 million in the year-ago quarter, owing to impressive performance of the Free People and Anthropologie brands.
Comparable retail segment net sales, including the comparable direct-to-consumer channel, grew 6%. Comparable retail segment net sales rose 18% and 6% at Free People and Anthropologie, respectively, while increasing 4% at Urban Outfitters. Net sales at the Wholesale segment climbed 21%.
This Philadelphia-based company also reported that its fiscal 2015 sales rose 8% to $3,323.1 million, whereas comparable retail segment net sales rose 2%. The company’s Wholesale segment net sales also surged 27%.
We believe that Urban Outfitters is committed toward improving the comps performance, investing in its direct-to-consumer business and enhancing productivity in existing channels as well as adding new brands and optimizing the inventory level. Going forward, the company intends to increase its store count, grow wholesale operations, enhance direct penetration and augment eCommerce activities.
This Zacks Rank #3 (Hold) company opened 38 stores during the year ending Jan 31, 2015. This include opening 15 Anthropologie Group stores, 12 Free People and 11 Urban Outfitters stores. However, the company closed 3 Urban Outfitters stores because of lease expirations.
Better Ranked Stocks
Other better-ranked stocks in the same sector include Tilly's, Inc. (TLYS), Stage Stores Inc. (SSI) and Aéropostale, Inc. (ARO). While Tilly's and Stage Stores sport a Zacks Rank #1 (Strong Buy), Aéropostale carries a Zacks Rank #2 (Buy).
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