Urban Outfitters, Inc. (URBN) – Growing the customer base

Urban Outfitters, Inc. (URBN) (Q2FY24)

Stock performance: Urban Outfitters stock gave returns of -3.3% and 41.8% in the period of three months and one year. The stock has a 52-week high of $37.82 and a 52-week low of $22.37. The stock gave returns of 35.7% and CAGR of 10.7% over a period of three years. The stock had a 200-Day Moving Average of $30.77 and a 50-Day Moving Average of $32.99.

Quarter Performance: In Q2FY24, net sales increased by 8% $1.27bn, compared to $1.18bn in Q2FY23. The $88.8mn increase was attributable to a $64.9mn, or 5.9%, increase in Retail segment net sales and an increase in Nuuly segment net sales of $27.0mn, or 93.9%, partially offset by a $3.1mn, or 5.2%, decrease in Wholesale segment net sales.

Guidance: In Q3FY24, URBN expects sales growth to be in high single digits. In FY24, company expects capital expenditure to be approximately $230mn. The effective tax rate is expected to be approximately 25% in Q3FY24 25% for FY24.

Highlights

In Q2FY24, the SG&A expenses of the company increased to $323.5mn, compared to $288.7mn in Q2FY23. This increase in the SG&A expenses as a rate to sales was mostly due to increased compensation costs, particularly incentive – based compensation connected to the company’s improved performance. Also, there were higher expenses in marketing and creative areas aimed at supporting increased sales and customer growth.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– CrispIdea Segment Forecast
– Economic Value Added Analysis
– Discounted Cash Flow Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– Key Metrics
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages: 43

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