URBN - Urban Outfitters: Tough Comps Ahead

• Urban Outfitters is set to release its Q4 and FY2022 results next month, and is on track for an earnings breakout year.
• This was helped by strong consumer demand, which translated to broad-based strength across all of the company's brands.
• However, with strong sell-through rates, less promotional activity, and consumers anxious to refresh their wardrobes post COVID-19, I would not be surprised to see some margin give-back in CY22.
• With the potential for a decline in annual EPS next year, and URBN up against difficult year-over-year comps, I don't see this pullback as a low-risk buying opportunity just yet.

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