Urban Outfitters stock surges 10% on strong holiday sales; BofA lifts target

Urban Outfitters (NASDAQ:) stock jumped 9.5% following the announcement that net sales in November and December saw a 10% increase compared to the corresponding months in the previous year.

Retail sales were up 8%, driven by a 6% increase in comparable sales, according to URBN.

Bank of America analysts raised the price target by $3 to $45 per share.

“We are raising our F24/25E EPS by 5%/7% to $3.32/$3.53 to reflect the record holiday sales and further margin expansion potential,” the analysts said.

“We are encouraged by the continued strength at Anthro and FP, as Anthro comps increased 14% and FP comps surged 20% in the holiday period (FP movement comps rose 45%).”

The company also announced that Shea Jensen will be joining URBN as President of Urban Outfitters Brand, North America.

“We expect Jensen’s expertise in merchandising and innovation to lead the improvement in product offering and strengthening of marketing that is needed to turn UO,” the analysts added.