I am not a fan of recession predictions, but Urban Outfitters report is showing that most likely this recession is already somewhere around. Why do I think so? Because the company decreased its margins significantly, currency fluctuations had an impact, but still, this is a decrease in margins. Operating income for the quarter decreased by 6% to $116 million, with operating profit margin deleveraging by 77 basis points to 11.5%. Foreign currency translation negatively impacted our operating profit rate by approximately 50 basis points in the quarter, and as earlier mentioned, store impairments negatively affected our operating profit rate by approximately 90 basis points in the quarter. Moreover, inventories are going up. So, to be honest, we again see the situation where analysts are moving the stock price. The company just exceeded their estimates and the stock is going up. I don't want to invest into a stock that has declining margins and I don't see any points for the trend reversal. Urban Outfitters could be a good brand, but they need to work better with their financials. In terms of multiples, P/E is in market - URBN has around 18.21x multiple, while the industry average is around 17.54x. P/S multiple is significantly higher than industry average: 0.96x against 0.71x. So in my opinion, URBN isn't the best investment choice right now.