Urban Outfitters Reports Positive Earnings Thus Far In Fourth Quarter
After a rough start to 2012, Urban Outfitters is going out with a bang. Earlier this year the retailer faced accusations of design theft, false claims of Navajo culture-ties and an abrupt departure of CEO Glen Senk. Its third-quarter sales fell 1 percent from a year earlier, and even that was better than analysts’ expectations. Now the company is bouncing back with a 6-percent gain in sales thus far in the fourth quarter, according to an SEC filing Dec. 10.
Urban Outfitters co-founder Richard Hayne replaced Senk as CEO and began a mission to bring shoppers back to the stores. In fact, the chain saw profit margins increase by 222 points last quarter, and each of the company’s brands saw sales rise. During the current fiscal year, Urban Outfitters plans to open 49 new stores—including 10 in the current quarter. Its forecasted capital expenditures range from $190 to $210 million as it opens new stores, expands its corporate headquarters and finishes a fulfillment center project in Nevada.
Moving back into Wall Street’s good graces, the company’s average 52-week stock price target is $38.92, and it is currently trading at a price-to-earnings ratio of $27.85—an almost five-year-high for the brand.
Shares of Urban Outfitter’s are currently up about 5% on the day.
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