Urban Outfitters shares plunge on profit, sales miss
It was the first time in seven quarters that the company missed profit estimates.
Retail names that miss on quarterly estimates are getting punished this earnings season.
Urban Outfitters is the latest as shares were chopped by 10 percent after profit and sales missed expectations.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| URBN | URBAN OUTFITTERS INC. | 51.05 | +2.32 | +4.76% |
The retailer said net income fell to $55.7 million, or 56 cents a share, from $77.5 million, or 70 cents a share, in the prior year's period.
Analysts surveyed by FactSet expected earnings of 57 cents a share.
HOME DEPOT SALES MISS, SHARES PLUNGE
It was the first time in seven quarters that the company missed profit estimates.
The company pointed to an increase in merchandise markdowns and higher labor costs as the reason.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Sales were $987.5 million in the quarter, a 1.4 percent increase from the year earlier.
Analysts expected $1 billion in sales.
Same-store sales rose 3 percent, ahead of analysts' estimates.
The company operates Anthropologie, Urban Outfitters and Free People shops.
CLICK HERE TO READ MORE ON FOX BUSINESS
Other retail disappointments this quarter are Kohl's, Macy's, Nordstrom and Home Depot, according to Dow Jones.