Urban Outfitters profit, stock tumble
Urban Outfitters' shares plummeted, raining on a parade of otherwise upbeat retail earnings WEDNESDAY. Quarterly profit at the bohemian lifestyle retailer dropped 28%, missing Wall Street's target for the first time in nearly two years.
Weak demand for women's clothing at its namesake chain drove the company to cut prices. That, along with higher labor costs, hurt the bottom line. Same-store sales at Urban Outfitters were flat, disappointing Wall Street which had expected a solid increase. What's more, the company's wholesale business suffered from increased markdowns from department stores.
The company, which also owns the Anthropologie brand, said it's seeing positive sales in the current holiday quarter.
But investors seemed unconvinced. Urban Outfitters shares fell more than 16% in early trading Tuesday - it's worst one-day performance in nearly 7 years. They've lost nearly a quarter of their value this year.
