Downgrade Target, Urban Outfitters winnings: Trendticker

00:00 Speaker A

Now time for some of today's trend kickers. We observe target and urban outfitters. If we come to me now, we have my morning co-moderator Madison Mills. First we have to set the stage here. Yes. Goal. ZIEL CUT CUT on neutral from buying at Bank of America. This follows a sluggish first quarter. The retailer says, partly due to the consumer protests in relation to its diversity, equity and inclusion policy and the reverse course there. Bofa writes in a research note that they are not sure when sales bounce back and expect profits to be pressed. Shares, they are around 2% higher today. We watched this closely when they reported income, Maddie.

00:52 Madison Mills

Yes, one of the things that stand out from this note here is that they talk about how the gap between goal and their colleagues continued to increase. They continue to see strong trends at digital and seasonal events, and merchandising initiatives could help, but they are below average their colleagues like a Walmart, for example when it comes to things like pedestrian traffic and compales. Uh, they obviously also talk about the company's gross margin and the EPS measure of the company and the reduction of their instructions here about the concerns about digital fulfillment and the costs for the supply chain, uncertainty in the upper line and softer sales, the higher markdowns and thus incremental margin pressure for the company. They also think that the growth of companies with a high margin such as marketplace and digital advertising could support stability. But I think it indicates the question mark in the room for a company like Target that says that they are retained. Do you necessarily want to hear analysts that a company that is definitely affected by tariff policy will not give the pillows about profits that result from increasing prices for consumers?

02:22 Speaker A

Yes. The former deputy chairman, Jerry Storch, told us today that they operate in a way that is not a strategy and they are not the one they should be. If wants and who have always been. So, not well performed, his kind of net snack bar was of it. Yes. Here, too, in retail, if you like, Urban Outfitters get on after they hit the floor in the first quarter. Analysts that emphasize the performance of its name, which also exceeds net sales here. If you look at the shares, they are now 22%, um and on the head, you could even say. Like these torn jeans. Yes.

03:20 Madison Mills

Hey, beautiful. Good job. Good job. Yes, since Davidson Capital Markets, um, says that it is a broad beat for urban outfitters here, strong dynamics. Believe that, apart from a slip or a macro pressure that appears later this year, you will continue to see this dynamic in the future. And it's interesting. Remember, Urban is the parent company of people such as anthropology, free people and this namesake, Urban Outfitters. You also have the rental line for clothing here. But we really saw the sales here. Obviously, greater beat when it came to urban outfitters at estimates, but also defeated free people. We actually only came shyly for free people, but it was a beat for anthropology. New net sales also increase over the estimates of the street and the retail networks over the above estimates. And what is interesting about this mix is ​​that it also hits many different income flows. So, Urban Outfitters, perhaps a little more accessible brand for consumers towards free people and anthros who are a little more expensive.

04:41 Speaker A

Yes, a good company based in Philadelphia there. And undoubtedly you will probably celebrate the passage of the Tush thrust and can still be used. All in all, you can scan the following QR code to track the best and worst stocks with the Trending Tickers from Yahoo Finance.