Almost two months ago, we recommended Urban Outfitters (URBN) as a value pick. We thought the company's strong balance sheet and liquidity position allowed URBN to weather the storm and gave them enough time to implement growth strategies that would resonate with their customers. The investment idea was solely based on mean reversion, as we didn't see URBN having competitive advantages.
However, they were quick to adopt an omnichannel strategy early on, which is paying dividends in the current environment as the pandemic has accelerated the adoption of e-commerce. When we first wrote