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 analystsâ€™ 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 companyâ€™s brands saw sales rise. During the current fiscal year, Urban Outfitters plans to open 49 new storesâ€”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 Streetâ€™s good graces, the companyâ€™s average 52-week stock price target is $38.92, and it is currently trading at a price-to-earnings ratio of $27.85â€”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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