Oppenheimer Reiterates OP Rating, $41 PT on Urban Outfitters

Urban Outfitters Inc. URBN reported FY1Q12 EPS of $0.23 “vs. our/consensus estimates $0.26/$0.24.” “Revenues rose 9% (DTC +19%, wholesale +22%) while comps (including DTC) declined 1% vs. 16% ly. Comps by division: Urban Outfitters 1% vs. 9%, Anthropologie (6)% vs. 22% and Free People 30% vs. 25% ly. Reflecting markdowns and inability to leverage store expenses, GM decreased 490 bps to 36.9% and SG&A rose 100 bps to 25.7%,” Oppenheimer writes. “Looking ahead, we believe management is appropriately conservative with go-forward guidance and has multiple initiatives in place to ensure 2H outperformance.” Oppenheimer is reiterating its Outperform rating and $41 PT on Urban Outfitters, which closed Monday at $32.29.