Morgan Stanley Comments On Urban Outfitters 2Q Results

According to Morgan Stanley, Urban Outfitters URBN reported 2Q EPS of $0.35, above the estimate of $0.33 and consensus at $0.32. Morgan Stanley said that gross margin (+1c), and SG&A forecast (+1c) drove the beat vs. the estimate. “We lower 3Q to $0.38 from $0.43 (GM to -300 bps from -120 bps and store comps -1% from flat), but keep 4Q unchanged at $0.56.” Urban Outfitters closed yesterday at $29.69.