NEW YORK (TheStreet) -- Urban Outfitters (URBN) - Get Report stock is rallying 4.68% to $28.65 on Wednesday after the retailer said today that it will no longer schedule employees for on-call shifts at its North America stores, CNBC.com reports.
This action applies to its brands Anthropologie and Free People as well. The Philadelphia-based company currently operates 518 stores in North America.
In April, New York Attorney General Eric Schneiderman sent letters to 13 retailers questioning them about on-calling scheduling. Since then, Gap (GPS), Abercrombie & Fitch (ANF), Victoria's Secret and Bath & Body Works have said that they will end on-call shifts. Now, Urban Outfitters joins them.
For employees, being called to work last minute makes it hard for them to plan for child care or work out their schedules during the day, CNBC.com noted.
Separately, TheStreet Ratings team rates URBAN OUTFITTERS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
We rate URBAN OUTFITTERS INC (URBN) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Despite its growing revenue, the company underperformed as compared with the industry average of 9.8%. Since the same quarter one year prior, revenues slightly increased by 6.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- URBN's debt-to-equity ratio is very low at 0.09 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.95 is somewhat weak and could be cause for future problems.
- The change in net income from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Specialty Retail industry average. The net income has decreased by 1.0% when compared to the same quarter one year ago, dropping from $67.51 million to $66.84 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Specialty Retail industry and the overall market on the basis of return on equity, URBAN OUTFITTERS INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- You can view the full analysis from the report here: URBN