Why Are Urban Outfitters (URBN) Shares Soaring Today
What Happened:
Shares of clothing and accessories retailer Urban Outfitters (NASDAQ:URBN) jumped 5.9% in the afternoon session after the company announced a 10% increase in revenue for the two months ending December 31, 2023. The growth was driven by an 8% increase in retail segment sales, with notable positive performances in digital channels and retail store sales for brands like Free People and Anthropologie. Additionally, the company announced Shea Jensen as the new President of Urban Outfitters Brand, North America, effective February 5, 2024. Given the growing challenges in the retail landscape in recent quarters, this updated guidance is expected to instill renewed optimism among investors.
The announcement also aligns with the positive preliminary results reported by peers Abercrombie & Fitch (NYSE:ANF) and American Eagle Outfitters (NYSE:AEO) on January 8, 2024. Both companies (ANF and AEO) raised their financial projections ahead of the upcoming earnings season, suggesting that specialty retail seems to be holding okay.
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What is the market telling us:
Urban Outfitters's shares are not very volatile than the market average and over the last year have had only 10 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Urban Outfitters is up 7.4% since the beginning of the year. Investors who bought $1,000 worth of Urban Outfitters's shares 5 years ago would now be looking at an investment worth $1,139.
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