The Dividend Daily

Clothing retailer Urban Outfitters, Inc. (URBN) on Thursday said that its third quarter profit rose 5% from last year, helped by higher sales and lower inventories.

The Philadelphia-based company reported third quarter net income of $62.4 million, or 36 cents per share, compared with $59.3 million, or 35 cents per share, in the year-ago period. On average, Wall Street analysts expected a slightly lower profit of 35 cents per share.

Overall sales rose 6% from last year, to $506 million, while same-stores sales rose 2% in the period. Same-store sales are a key indicator of a retailer’s health, since they measure the performance of stores open at least one year.

Urban Outfitters shares fell 17 cents, or -0.5%, in premarket trading Thursday.

The Bottom Line
Shares of URBN are off 52-week high levels of $34 a share. The stock has technical support in the $27-$30 price area. If the shares can continue the recent run, we see overhead resistance around the $34-$37 price levels. We do not currently rate this non-dividend paying stock, but we do follow the company closely.

Urban Outfitters, Inc. (URBN) does not currently pay a dividend.

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