The Motley Fool Previous Page


Urban Outfitters Is Better Than the Market Thinks

http://www.fool.com/investing/general/2013/09/14/urban-outfitters-is-better-than-the-market-thinks.aspx

Andrew Marder
September 14, 2013

Earlier this week, Urban Outfitters (NASDAQ: URBN) turned in its second-quarter SEC filing. The revenue and earnings results were actually announced back in August, but the quarterly filing had some extra info. As it turns out, that info freaked investors out, and the company's stock fell about 10%. The surprise was that the third quarter had started out slowly.

In the second quarter, comparable sales had put up solid growth, beating out most other teen apparel chains for the period. Unfortunately, the third quarter has been off to a slower start. Given what we know, did the stock deserve to get crushed the way it did?

The short answer
No, probably not. Urban Outfitters has now fallen back below pre-second-quarter announcement pricing. The shocking fall was only from 9% year-over-year growth, which it reported for the second quarter, to "mid single-digit positive" so far in the third. If that means 5%, Urban Outfitters would still be doing impressively well.