Urban Outfitters Plunges as Anthropologie Drags Down ResultsNick Turner
Urban Outfitters Inc.’s stock suffered its worst day in more than three years after a slump at its Anthropologie unit dragged down results.
Earnings slipped to 25 cents a share last quarter, the Philadelphia-based company said on Monday, missing the 30 cents projected by analysts. Revenue amounted to $739 million in the period, short of the $757.6 million projection.
While sales at Urban Outfitters’ flagship chain outpaced expectations last quarter, Anthropologie was a letdown -- due in part to increased discounts at the female-focused brand. Comparable sales at Anthropologie rose 1 percent, compared with an estimate for 4.7 percent growth. The chain’s performance may be in a similar range this quarter, the company said.
“This first quarter’s 1 percent comp is a disappointment,” David McCreight, head of Anthropologie, said on a conference call. “A few merchandise categories were not as well received and impacted the result, most notably dresses and accessories.”
The stock plummeted 15 percent to $34.61 in New York, the biggest one-day decline since January 2012. Before the plunge, the shares had been up 16 percent this year.
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