Urban Outfitters Inc.’s Investment and Performance

Subject: Company Analysis
Pages: 1
Words: 260
Reading time:
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The investment policy of Urban Outfitters Inc. is extensive enough, and in order to update the data of the case, it should be stated that the investment rate has only increased. Thus, in accordance with Wiki Analysis:

“Urban Outfitters, Anthropologie, Free People, and Terrain (launched in 2009). 78.9% of its 2008 revenue came from brick and mortar stores, with the remaining 21.1% split between catalog, e-commerce, and wholesale. Although the company’s performance in the fiscal year 2008 was below analyst expectations, the company still boasts the greatest sales per square foot ($796 in 2008) and operating margin (16.9% in 2008).”

In the light of this perspective, it should be stated that the original share depends on the matters of business performance, but not only the investment rates. Thus, Ruffy emphasizes the following statement:

“It is highlighted that the trade-in question on July 22 when shares of the retailer were around $32 per share. On that date, large blocks of 30 and 15 strike puts expiring in January 2010 traded for $5.60 and 90 cents, respectively. Since the volume in these two contracts exceeded 30,000, it was certainly noteworthy.”

Nevertheless, this information is not complete, and Bnet gives the following information:

“Relative Strength Differential (RSD), our proprietary indicator for selecting super-strong stocks, has just crossed above the 25 threshold line, indicating the stock is strong enough compared to the S&P 500 to be considered a candidate for a buy.”