UPDATE: Sterne Agee Color on Urban Outfitters PT Decrease

Sterne Agee, which lowered its PT on shares of Urban Outfitters Inc. URBN, is providing some color on the stock. “Q1 results were in line with our recently reduced estimate of $0.23 but below the latest consensus of $0.24,” Sterne Agee writes. “Excluding one-time items of $3.0 million in connection with the shutdown of Leifsdottir in the wholesale channel, Urban had a 25% drop in operating income with its operating margin falling to 11.8% – down from 17.1% last year. Store comps fell 5%. “Retail comps (which include direct) rose 1% at Urban Outfitters with Anthropologie retail comps down 6%. The smaller Free People unit had retail comps up 30%. Direct sales comps rose 15% below the 33.6% rate of last year with issues tied to Anthropologie's March catalog cited.” Urban Outfitters closed Monday at $32.29.