Urban Outfitters Inc. Plunges On Q4 Profit Warning

Urban Outfitters Inc.

shares fell sharply in the extended session Thursday after it warned that fourth-quarter profits may be hurt by lower-than expected sales. The Philadelphia-based apparel retailer said its third-quarter gross profit margin may narrow "at a rate greater than during the first half of the year." because of continued declines in same-store sales. Wall Street expects earnings of $0.50 cents a share on sales of $835.2 million for the period ended Oct. 14. In the recent period, the company's total same-store sales were flat but fell by 10 percent at its flagship Urban Outfitters stores. For the six months ended July 31, the company's gross profit margin narrowed by 200 basis points. Besides its flag-ship brand, the company also operates under the Anthropologie, Bhldn, Free People and Terrain brands.