Fischer Said to Be the Leading Candidate for Fed Vice Chairman
Urban Outfitters Slumps After Third-Quarter Sales Outlook
Urban Outfitters Inc. (URBN) declined the most in almost 20 months after the teen-clothing retailer said third-quarter comparable-store sales have been rising at a “mid-single-digit” rate.
The shares slid 10 percent to $38.35 at the close in New York, their biggest drop since January 2012. The decline was the largest today in the Standard & Poor’s 500 Index. The stock has fallen 2.6 percent this year, as the S&P 500 has gained 18 percent.
The operator of Urban Outfitters, Anthropologie and Free People stores made the comment yesterday in a U.S. regulatory filing. Janney Montgomery Scott LLC last week estimated that the Philadelphia-based retailer would report that the sales were running at a “high-single digit” rate.
The company’s namesake division has seen weakness this month and in August, Adrienne Tennant, a Janney Montgomery analyst, said today in a note. Urban Outfitters offered an additional 30 percent off all clearance items during Labor Day weekend, which didn’t occur last year, said Tennant, who has a buy rating on the shares.
“We continue to believe the teen sector remains challenged due to fierce competition to capture market share and highly promotional environment,” she wrote.
To contact the reporter on this story: James Callan in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Robin Ajello at email@example.com