Urban Outfitters’ comparable sales rose less than expected in the third quarter due to weakened demand for its Anthropologie brand. The company’s shares plummeted by 7.6% in extended trading.
The retailer said third-quarter comparable sales at Anthropologie, its biggest brand by sales, was flat in the quarter which ended on October 31.
Analysts had expected 1.60% growth from the company.
Urban Outfitters also posted sales growth of just 1% which fell far below analysts expectations of 3.4%.
Before the company reported its slower than expected earnings, analysts argued that a warmer than normal September and October were likely to hurt sales for cold weather apparel such as coats and jackets. Slowing sales in those areas hurt Urban Outfitters growth numbers.
The company’s net income rose to $ 52 million, or 42 cents per share, in the third quarter from $ 47.1 million, or 35 cents per share, a year earlier.
Net sales rose 1.3% to $ 825.3 million, well below the $ 869.8 million analysts expected.
Shares are now at a four-year low of $ 22.67.Business & Finance Articles on Business 2 Community