Shares of Urban Outfitters (URBN) - Get Report surged on Wednesday after the retailer reported better-than-expected fiscal second-quarter earnings and surging digital sales, sparking a series of analyst upgrades.
The Philadelphia-based company, which also operates Anthropologie, BHLDN, Free People and other brands, posted fiscal second-quarter earnings of $34 million, or 35 cents a share, well above analysts’ expectations of a 40-cent-a-share loss.
Comparable retail segment sales declined by 13% during the quarter, though the company said that was more than offset by “double-digit digital sales growth.” Overall Sales came in at $803 million, down 16.5% from a year ago but above analysts’ estimates of $672 million.
The better-than-expected results prompted a flurry of upgrades from analysts, who took a shine to the company’s Free People and e-commerce results -- as well as its overall positive performance amid what has become a have vs. have-not landscape for retailers amid the coronavirus pandemic and economic downturn.
Barclays analyst Adrienne Yih raised the firm's price target on Urban Outfitters to $26 from $18 and held her equal weight rating on the shares. Telsey Advisory analyst Dana Telsey upgraded her rating to outperform from market perform and lifted her one-year target to $30 from $24, while Loop Capital analyst Laura Champine upgraded her rating to hold from sell with a $24 price target.
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