Wedbush Cuts Estimates And Price Target On Urban Outfitters

According to Wedbush, Urban Outfitters' URBN choppy spring trends leads it to cut estimates and price target to $33 from $35. Wedbush reported that, while it continues to applaud URBN for its long-term growth prospects domestically and abroad, it believes the retail business at UO and Anthropologie continue to experience choppy sell-throughs. “In addition, with excess inventory to clear at UO, we have trimmed our sales and gross margin forecasts for H1. Given ongoing investments in new concepts (including the successful launch of BEHLDN), systems, and international expansion, SG&A will require ~4% comp to lever and could, therefore, place additional pressure on EPS TY. With Feb comps of ~+4% before tougher comparisons in March and April, we anticipate sales to decrease to the ~+LSD range when the company provides a business update in the 10-K expected on April 1st. Given the current fashion adjustments and inventory clearance underway, we are maintaining our NEUTRAL rating.” Urban Outfitters closed yesterday at $30.40.