URBN

Urban Outfitters Inc

Consumer


Presented:06/27/2018
Price:$45.55
Cap:$4.96B
Current Price:$37.28
Cap:$3.44B

Presented

Date06/27/2018
Price$45.55
Market Cap$4.96B
Ent Value$3.94B
P/E Ratio36.73x
Book Value$12.39
Div Yield0%
Shares O/S108.83M
Ave Daily Vol2,476,304
Short Int31.04%

Current

Price$37.28
Market Cap$3.44B
Urban Outfitters, Inc. engages in the operation of retail clothing stores and sale of general merchandise. It operates through the Retail and Wholesale segments. The Retail segment offers merchandise directly through stores, catalogues, call centers, and websites, and consists of the brands Urban Outfitters, Anthropologie, Free People, Terrain, and Bhldn; as well as consists of food and beverage divisions. The Wholesale segment primarily designs, develops and markets young women's contemporary casual wear including intimates and activewear and shoes under the Free People brand and home goods under the Anthropologie brand. The company was founded by Richard A. Hayne and Scott A. Belair in 1970 and is headquartered at Philadelphia, PA.

Publicly traded companies mentioned herein: Abercrombie & Fitch Co (ANF), American Eagle Outfitters Inc (AEO), Canada Goose Holdings Inc (GOOS), Five Below Inc (FIVE), Urban Outfitters Inc (URBN)

Highlights

The presenter is bearish on a number of apparel retailers, but believes the risk/reward on a short position in Urban Outfitters (URBN) is the most favorable at this time. Many of the stocks in the group, including Abercrombie and American Eagle, are up 100%+ off the bottom (last 12 mo), but URBN has tripled and now trades at 36x trailing, and 18x one-year forward Street EPS estimates. Technically, short interest has dropped meaningfully, and given the “basket nature” of URBN’s business, if any one of its three brands (Urban Outfitters, Anthropologie, or Free People) falter over the next year, the stock could drop by 40% - 50%.

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Idea Discussion

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