Urban Outfitters was at one point one of the most popular brands on the high-street but the company has been experiencing uncertain sales rate recently.
Based on the first quarter, CEO Richard Haynes has said there has been a strong reaction by customers to its new spring collection at Anthropologie and Free People. The CEO however, remains cautious due to the ongoing struggles with its namesake brand. The Urban Outfitters brand sales declined in the fourth quarter with sales from brands Anthropologie and Free People reversing the losses.
Analysts have been reviewing the stock and a potential turnaround has been mentioned. Jefferies’ Randal Konik believes Urban Outfitters will experience a turn around in the second half of the year and that once this happens the retailers stock will benefit as well as Anthropologie and Free People. Konik set a price target at £32.49.
Ike Boruchow of Sterne, Agee & Leach and Citi Investment Research’s Oliver Chen have both maintained a neutral stance believing the company’s profits will be pressured by the ongoing challenges with the namesake brand. Boruchow lowered Urban Outfitters’ price target to £22.87 from £25.27 and Chen reduced the retailer’s price target to £24.67 from £25.87.
Shares of Urban Outfitters Inc. fell £1.14, or 5 percent, to £21.43 in morning trading. Better sales are needed from the Urban Outfitters brand to drive the company forward but only time will tell if Urban Outfitters will make a turnaroundÃ¢â‚¬â€¹