Urban Outfitters, Inc. Sinks In #PreMarket On Weak Q2 Results

Urban Outfitters, Inc. URBN shares dropped in pre-market trading Wednesday after the company missed second-quarter estimates and said same-store sales fell 10 percent at its namesake operation.

The Philadelphia-based retailer also said that so far in the current third quarter, same-store sales are down "in the low single digits."

Second-quarter comparable sales grew 6.4 percent for its Anthropologie Group and 20 percent for its Free People Unit. Collectively, same-store sales were off by 0.2 percent.

The negative comps coupled with lower merchandise margins at Urban Outfitters drove gross profit down to 37.4 percent of sales from 39.3 percent a year earlier. Retail sales grew five percent to $37.2 million, while the wholesale segment grew 35.9 percent to $15.6 million.

Net income grew to $67.5 million or $0.49 per share, from $76.4 million or $0.51 per share in the year earlier period. Wall Street expected income of $0.51 per share on revenue of $839.8 million.

Total sales increased seven percent to $811.3 million, from $758.5 million last year.

Urban Outfitters was recently down 1.2 percent at $38.41.