Stock price when the opinion was issued
*Short* They also have 2 other brands, which are 60% of their sales, and those are really struggling. There has been very poor mall traffic. Virtually every department store has been warning. You also have all the cyclicals in vagaries of getting fashion right, which is very hard. (Analysts’ price target is $32.88.)
Actually, their main brand, Urban Outfitters, is no longer their top seller (and is losing sales), but Anthopologie is, 43% of 2023's sales, and boasts 12% same-store sales growth. Nuuly, their new subscription sales business, accounts for 5%, but he doesn't mind it isn't making money yet because it's growing fast. Overall company adjusted net sales rose 7% YOY. Also, inventories are tight, so they don't need to markdown goods. Over the winter, the company gave mixed signals for February sales and this weakened the stock. Shares fell until May 21, when they delivered a terrific quarter with an earnings beat and boasted stronger growth.