Urban Outfitters News
On Monday morning before the market opened, Urban Outfitters ($URBN) released holiday sales figures that came up short of expectations and sent shares tumbling in the premarket session. The company announced an increase of 3% in same store sales for the previous two months but they expect sales to be offset because of higher cost to promote their brand due to the lack of demand. Shares have been beaten down over 30% from November’s peak of $40.80 and with releases like this we should expect more downside in the near future.
Excerpt From Press Release:
During the eleven months ended December 31, 2016, the Company opened a total of 27 new stores including: 13 Free People stores, 10 Anthropologie Group stores and 4 Urban Outfitters stores; and closed 3 stores including: 1 Free People store, 1 Anthropologie Group store and 1 Urban Outfitters store. During the eleven months ended December 31, 2016, the Company opened 2 new restaurants and acquired 6 Vetri Family restaurants which are included in the Food and Beverage division. – Yahoo
Looking at the daily chart above you will notice that Urban Outfitters has been under selling pressure since November and now trading well below its 200-day moving average that is currently at $31.68. Shares are looking to open Monday below Friday’s close of $27.42 with prices currently trading at $26.04, marking a 5% decrease in value.
We should see some support come in at $25, an important going back on the daily chart, as well at $20 if prices get pushed that low. Above we are looking at resistance at $27.40, $30 and $31.68. Expect shares to be more volatile than normal with increased volume and possibly wider spreads.
Urban Outfitters Profitle
Urban Outfitters, Inc. is a lifestyle specialty retail company. The Company operates through two segments: Retail and Wholesale. The Company’s Retail segment consists of its Urban Outfitters, Anthropologie, Free People, Terrain and Bhldn brands, whose merchandise is sold to its customers through retail stores, Websites, mobile applications, catalogs and customer contact centers. The Retail segment also includes Vetri Family, which operates restaurants under the names Amis, Alla Spina, Lo Spiedo, Pizzeria Vetri and Osteria. Its Wholesale segment consists of the Free People wholesale division that primarily designs, develops and markets young women’s contemporary casual apparel and shoes through individual and chain specialty stores and department stores. The Company’s Wholesale segment includes Free People-branded tops, bottoms, sweaters, dresses, intimates, shoes and activewear, which are sold through department and specialty stores around the world, and its Free People stores. – GoogleFinance