Urban Outfitters Slumps After Holiday Store Sales Slump
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Urban Outfitters Inc. sank by the most in seven weeks after it reported a disappointing holiday season, the latest clothing seller to miss after similar results Thursday from several other retailers.
The company’s fourth-quarter gross margin will be pressured by “increased promotional activity” in apparel at its namesake store, as well as the Anthropologie banner, during the holiday period. “The weaker-than-anticipated margins came as a surprise with the consensus view being that URBN was the ‘best house on a bad block’ this holiday,” Citigroup analyst Paul Lejuez wrote in a note. Urban Outfitters’ update follows similarly disappointing holiday updates from retailers including Kohl’s Corp., J.C. Penney Co. and L Brands Inc.