A very good exhibiting throughout an necessary retail interval and an analyst worth goal elevate had been the information objects driving City Outfitters (NASDAQ: URBN) greater in December. The veteran apparel retailer noticed its share worth shut the month at virtually 13% greater, as buyers had been cheered by the most recent headlines in regards to the firm.
A Black Friday outperformer, in accordance with one researcher
City Outfitters did slightly effectively through the unofficial Black Friday buying vacation on the finish of November. That, not less than, is the analysis of researcher BMO, which recognized the retailer as one of many higher performers within the sector through the interval.
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In accordance with reviews, in a contemporary evaluation printed initially of December, BMO mentioned City Outfitters and the high-end clothier Anthropologie delivered robust gross sales and brisk stock turnover for the interval. It additionally singled out cosmetics specialist Ulta Magnificence for related efficiency.
Whereas Black Friday 2024 was typically thought of successful, some retailers did not do in addition to the market might need anticipated. BMO flagged Tapestry and Capri Holdings‘ Michael Kors as being underperformers. It added that corporations comparable to athletic put on purveyor Beneath Armour and train bike maker Peloton continued to work by means of turnaround packages to enhance their companies.
This was bolstered by one other up to date tackle City Outfitters inventory printed in the course of the month. Baird analyst Mark Altschwager raised his price target on the inventory to $55 per share from $49. Though Altschwager maintained a impartial advice on the corporate, he identified a number of optimistic components within the firm’s favor.
In accordance with reviews, the pundit believes the corporate’s Free Folks model, along with Anthropologie, did higher than anticipated within the earlier quarter, with strong momentum persevering with into the early vacation season. Whereas he is involved that the flagship City Outfitters model may use enchancment on the highest line, administration is making progress in turning the state of affairs round. He additionally mentioned the corporate has a powerful stability sheet.
Fourth-quarter outcomes will inform the story
City Outfitters has definitely performed effectively of late, nevertheless it’s necessary to keep in mind that the corporate has not but supplied particulars of crucial retail interval of all of them — the vacation season. We must always get a transparent image of this when administration publishes its fourth-quarter outcomes, which can possible happen in late February. Till then, it may be smart to be cautious concerning the inventory following its current bull run.
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Eric Volkman has no place in any of the shares talked about. The Motley Idiot has positions in and recommends Peloton Interactive and Ulta Magnificence. The Motley Idiot recommends Tapestry and Beneath Armour. The Motley Idiot has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.
