Stockchase Opinions

Jim Cramer - Mad Money Urban Outfitters URBN-Q BUY Jun 26, 2024

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.

$43.330

Stock price when the opinion was issued

clothing stores
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TOP PICK
Trades at 15 X next years earnings. Consistant performer. Expects multiple expansion.
PAST TOP PICK
(Was a top pick on Apr 16/03 at $25. Now $36.95.) Sold off at the $32/33 level. Trades at 22 X earnings. Better opportunities elsewhere.
TOP PICK
If you want growth in North America, you have to focus on retail. Their core constituency is the 18/24 age crowd. In 22 states, so have lots of room to grow. Same store sales are growing very nicely at about 8%.
TOP PICK

*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.)

DON'T BUY
They report Monday. He believes in the company, but the fashion stocks have had a big run. He wouldn't touch it now.
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TOP PICK
Stockchase Research Editor: Michael O'Reilly URBN has established a strong online presence. New digital customers rose 45% last quarter. The company has had to hire extra workers to fulfill the demand. This is resulting in a sizable increase in cash holdings -- estimated at over $450 million on the year. With vaccines on the way, there is a lot of pent up consumer demand in general. We would trade this with a stop-loss at $21, looking to target $32 -- 18% upside. Yield 0% (Analysts’ price target is $31.41)
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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
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PAST TOP PICK
(A Top Pick Dec 24/20, Up 19.5%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with URBN has achieved its $32 target. To remain disciplined, we recommend covering 50% and trailing up the stop (from $21) to $25.
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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Dec 24/20, Up 39.7%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with URBN is progressing well. We are recommending to trail up the stop to $30. This would all but ensure a minimum investment return exceeding 15%, including the recommendation to cover 50% previously.
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Dec 23/20, Up 12.1%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with URBN has triggered its stop at $30. To remain disciplined, we recommend covering the balance of the position at this time. Combined with the previous recommendation to cover half the position, this results in a net investment return over 15%.