Hard to believe it, but it has now been several years since we have traded Urban Outfitters, Inc. (NASDAQ:URBN). It is one of the several specialty retailers we have followed for years, but we have not covered it publicly in several years, though have analyzed it for traders at our investing group. The company has really turned things around for the better of late, but today shares are declining on the just-reported Q1 earnings.
Now, we are cognizant of the macro risks out there. Sky-high interest rates. High credit card debt. Rampant inflation. Elevated gas prices, higher utility costs, housing costs up, and a return of student loan payments. Through all of this, we are seeing mixed signals in earnings reports on consumer confidence. It really is mixed. Survey data suggests the consumer has been resilient, but earnings reports and management comments have often conflicted with this. With that said, retail is a prime example of where we are seeing and hearing mixed signals. Specialty retail is especially competitive.
That said, URBN delivered a great report, and we think shares are……..READ FULL ARTICLE