After another upbeat quarterly report, some investors might be wondering how much upside is left, according to Jefferies.
Jefferies, while impressed by the performance, stated that investors might be concerned about further improvement and hence demoted the stock, according to the research firm’s comments reported in a MarketWatch report.
Nonetheless, on Stocktwits, the retail sentiment for the stock rose to ‘extremely bullish’ from ‘bullish’ the previous day. Message volume rose 1,500% in the past 24 hours.
Urban Outfitters reported 11% growth in revenue to $1.50 billion and net income of $1.58 per share for the second quarter, beating analysts’ expectations of $1.48 billion in revenue and $1.48 per share net profit.
“We saw exceptional performance across all of our segments – Retail, Subscription, and Wholesale… We are confident in our continued momentum,” CEO Richard Hayne said in a statement.
Urban Outfitters sells apparel, footwear, accessories, beauty products, and home décor, primarily aimed at young adults, and its merchandise is known for its trendy and bohemian styles.
The company also forecasted third-quarter total sales growth in the “high-single-digit growth” range. Analysts expect growth of around 7.6%.
Urban Outfitters is among a few fashion retailers that are doing well in a challenging market, characterized by high inflation and weak shopping trends.
The company has consistently posted sales and profit growth over the past several quarters, and its stock is up 42% year-to-date, outperforming the 10.2% gains in the benchmark S&P 500 index (SPX).
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