Nov 22, 2016
Urban Outfitters sales miss as Anthropologie, Free People drag
Nov 22, 2016
Apparel retailer Urban Outfitters Inc reported quarterly comparable sales that missed analysts' estimate as demand fell for its Anthropologie Group and Free People brands, sending its shares down 9 percent in after-market trading.
The company said on Tuesday its comparable sales rose 1 percent in the third quarter ended Oct. 31, falling short of the average analysts' estimate of 1.9 percent, according to research firm Consensus Metrix.
Comparable sales dropped 2.7 percent at Anthropologie Group and 1.5 percent at Free People. Analysts had expected a fall of 1 percent at both brands.
Anthropologie, wedding dress retailer BHLDN and outdoor lifestyle brand Terrain make up the Anthropologie Group.
Urban Outfitters' net sales rose 4.5 percent to $862.5 million, but missed analysts' estimate of $868.8 million, according to Thomson Reuters I/B/E/S.
The company's net income fell to $47.4 million, or 40 cents per share, from $52 million, or 42 cents per share, a year earlier.
Analysts on average had expected a profit of 44 cents per share.
Urban Outfitters has been trying to win back shoppers who have shifted online and to fast-fashion brands such as H&M and Inditex's (ITX.MC) Zara by adding bars, restaurants and hair salons to its stores.
Up to Tuesday's close of $39.01, the Philadelphia-based company's shares had risen 71.5 percent this year.
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