Citi Comments On Urban Outfitters' Fashio Path Reminiscent Of Last Fashion Transition

In a report published by Citi, Urban Outfitters' URBN pattern thus far is eerily reminiscent of its last fashion transition.

Citi said that margins are following a similar path to the transition in 2005/2006. “Sentiment was starkly different into tonight's 4Q release vs 3Q, and we think the stock tests $30 before it can move higher. Inventories are in better shape this time and the company can maneuver into non-apparel categories that are trending. But rising costs present a new challenge and there's little visibility into 2H. That probably renders the shares rangebound until the fashion cycle is more apparent.”

Urban Outfitters closed yesterday at $33.45.