Urban Outfitters shares close lower on Wednesday, store traffic and sales drop in Milan and Seattle, company says

Urban Outfitters Inc (URBN) on Wednesday updated on business trends prior to its management’s participation at the BofA Securities Consumer & Retail Technology Conference 2020.

Urban Outfitters shares closed lower for the eighth time in the past ten trading sessions on NASDAQ on Wednesday. The stock went down 7.37% ($1.26) to $15.82, after touching an intraday low at $15.51, or a price level not seen since April 8th 2009 ($15.36).

Shares of Urban Outfitters Inc have retreated 43.03% so far this year, following another 16.36% drop in 2019.

“Over the past week, we have seen a decline in store traffic and sales in areas heavily impacted by COVID-19 such as Milan, Italy and Seattle, Washington, as well as a few additional locations. We have not seen a significant impact to stores in other locations or to our Digital channel,” Urban Outfitters said in a press release.

“Due to the uncertainty around the spread of COVID-19 in North America and Europe, at this time, we cannot forecast the extent to which COVID-19 will impact our business in the first quarter,” the lifestyle products and services company also noted.

Analyst stock price forecast and recommendation

According to CNN Money, the 17 analysts, offering 12-month forecasts regarding Urban Outfitters Inc’s stock price, have a median target of $25.00, with a high estimate of $30.00 and a low estimate of $22.00. The median estimate represents a 58.03% upside compared to the closing price of $15.82 on March 11th.

The same media also reported that at least 15 out of 21 surveyed investment analysts had rated Urban Outfitters Inc’s stock as “Hold”, while 6 – as “Buy”.