Boston, MA 10/03/2013 (wallstreetpr) – On October 2, Urban Outfitters Inc. (NASDAQ:URBN) received both good and bad news. The stock has been under the pump from the second week of September when the company announced its 2Q results.
The bad news first. A securities firm ‘Brower Piven’ has launched an investigation to determine if the company wilfully violated SEC laws while putting together quarter reports for this fiscal.
The issue centres on the sales and margin figures quoted in September 9 earnings report of URBN in comparison to its previous quarter numbers. The investigators are checking if the pervious quarter sales and margins numbers were misrepresented which in turn caused the Urban Outfitters to announce “thus far during the third quarter of fiscal 2014, comparable retail segment net sales are mid single-digit positive.” The law firm wants to explore if cause exists to file a class action on behalf of investors who purchased over valued shares (due to alleged misrepresentation of sales numbers) of URBN between May 21 and September 9.
Now to the good news. Slews of analysts have come out with positive reading of Urban Outfitters business outlook and have opined that the stock is well placed to regain its lost $42 per share valuations. One such analyst, Susan Anderson of FBR Capital Markets thinks the company is “well positioned to navigate an environment in which consumers crave fashion and differentiated products” and has a healthy margin with the possibility of further expansion.
The boutique firm is fighting back with new initiatives to gain back lost valuation. It has filed for licenses to open up a bar and food counters at its new under construction facility at Williamsburg, in New York. The firm has launched a rewards program through a new mobile application which will allow the dress designer to stay in touch with and engage younger customers.
