This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
Kaplan Fox Reminds Investors Of May 31, 2011 Lead Plaintiff Deadline In Securities Class Action On Behalf Of Purchasers Of Urban Outfitters, Inc. Common Stock During The Period November 15, 2010 Through March 7, 2011
May 24, 2011 /PRNewswire/ --
Kaplan Fox & Kilsheimer LLP (
www.kaplanfox.com) has filed the first and only class action suit against Urban Outfitters, Inc. ("Urban Outfitters" or the "Company") (Nasdaq: URBN) that alleges violations of the Securities Exchange Act of 1934 on behalf of purchasers of Urban Outfitters common stock during the period
November 15, 2010 through
March 7, 2011, inclusive (the "Class").
The case is pending in the United States District Court for the Eastern District of
Pennsylvania. A copy of the complaint may be obtained from
Kaplan Fox or the Court.
The Complaint alleges that, during the Class Period, Defendants discussed an emerging shift in fashion trends that Defendants represented was an opportunity for the Company and represented to investors that the Company would be able to manage the trend, that Company had effective inventory management controls and systems, and that Urban Outfitters inventory would "grow more in-line with sales growth."
It is alleged, however, that by the beginning of the Class Period, Defendants knew, or had reason to know, that the Company was not managing the shift in fashion trends because: (1) the Company's inventories were increasing materially more than sales, (2) sales at the Company's namesake
Urban Outfitters store and
Anthropologie division were materially declining due to lack of customer demand, especially for women's apparel, and (3) as a result, the Company was forced to mark down the price of inventory which materially adversely affected the Company's margins and financial results for the quarter ended
January 31, 2011.
The Complaint further alleges that on
March 7, 2011, investors in Urban Outfitters' stock learned the truth about the Company when, after the close of trading, Defendants disclosed the Company's financial results for the quarter ended
January 31, 2011. Among other things, the Company disclosed i) earnings of
$75 million or
$0.45 per share for the fourth quarter, which was approximately 13% less than the
$0.52 per share expected by analysts; ii) that gross profit margin materially declined, primarily due to increased merchandise markdowns to clear seasonal inventory associated with changing women's apparel fashion trends; and iii) retail inventories increased by 10% at cost while total comparable store inventory increased by 4% at cost and total inventories grew by
$43 million or 23%, on a year-over-year basis.
March 8, 2011, Urban Outfitters shares declined from a close on
March 7, 2011 of
$37.99 per share, to close at
$31.66 per share, a decline of
$6.33 per share or approximately 17% on heavier than usual volume.
If you are a member of the proposed Class, you may move the court no later than
May 31, 2011 to serve as a lead plaintiff for the Class. You need not seek to become a lead plaintiff in order to share in any possible recovery.
Plaintiff seeks to recover damages on behalf of the Class and is represented by
Kaplan Fox & Kilsheimer LLP. Our firm, with offices in
New Jersey, has many years of experience in prosecuting investor class actions and actions involving financial fraud. For more information about
Kaplan Fox & Kilsheimer LLP, or to review a copy of the complaint filed in this action, you may visit our website at
If you have any questions about this Notice, the action, your rights, or your interests, please contact:
Jeffrey P. CampisiKAPLAN FOX & KILSHEIMER LLP850 Third Avenue, 14th Floor
New York, New York 10022(800) 290-1952(212) 687-1980Fax: (212) 687-7714E-mail address:
email@example.comLaurence D. KingKAPLAN FOX & KILSHEIMER LLP350 Sansome Street, Suite 400
San Francisco, California 94104(415) 772-4700Fax: (415) 772-4707E-mail address:
Kaplan Fox & Kilsheimer LLP