URBN Preview: Getting Involved

Urban Outfitters (URBN - commentary - Cramer's Take) is scheduled to release its first-quarter 2009 results before the market opens on Thursday and follow up with its quarterly conference call later that morning.

Analysts expect the company to earn 23 cents per share on net sales of $392.2 million. In the year-ago quarter, Urban Oufitters earned 17 cents per share on net sales of $314.5 million.

This would imply a 35% year-over-year EPS growth rate and a 25% year-over-year sales increase. EPS is expected to rise 27% in fiscal 2009, to $1.19 per share, and another 24% in 2010, to $1.47.

Last week, Urban Outfitters released its sales figures for the first quarter. Same-store sales rose 10%, while total sales rose 25%, to $394.3 million, on a preliminary basis. The strongest growth is coming from the Anthropologie and Free People brands.

Recently, I took a small long position in Urban Outfitters after the stock fell from its recent high. I did not want to get too aggressive ahead of the conference call, but this is a name that I want to be involved in once again.

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At the time of publication, Rothbort was long Urban Outfitters, although positions can change at any time.

Scott Rothbort has over 20 years of experience in the financial services industry. In 2002, Rothbort founded LakeView Asset Management, LLC, a registered investment advisor based in Millburn, N.J., which offers customized individually managed separate accounts, including proprietary long/short strategies to its high net worth clientele. He also is the founder and manager of the social networking educational Web site TheFinanceProfessor.com.

Immediately prior to that, Rothbort worked at Merrill Lynch for 10 years, where he was instrumental in building the global equity derivative business and managed the global equity swap business from its inception. Rothbort previously held international assignments in Tokyo, Hong Kong and London while working for Morgan Stanley and County NatWest Securities.

Rothbort holds an MBA in finance and international business from the Stern School of Business of New York University and a BS in economics and accounting from the Wharton School of Business of the University of Pennsylvania. He is a Term Professor of Finance and the Chief Market Strategist for the Stillman School of Business of Seton Hall University.

For more information about Scott Rothbort and LakeView Asset Management, LLC, visit the company's Web site at www.lakeviewasset.com. Scott appreciates your feedback; click here to send him an email.