Skip to content
Subscriber Only

Urban Outfitters Drops After Saying It Will Buy Pizza Chain

Video player cover image

Why Is Urban Outfitters Buying an Italian Food Chain?

Updated on

Urban Outfitters Inc.’s plan to get into the restaurant business isn’t sitting well with investors.

The stock fell 7.4 percent on Monday after the company announced the acquisition of Philadelphia’s Vetri Family group of restaurants, including the Pizzeria Vetri chain. Broader concerns about a retail slump were already weighing on the stock, and the surprise move may have put shareholders on edge, said Simeon Siegel, a New York-based analyst at Nomura Securities.