Urban Outfitters Misses Q1 Views, Shares Tumble

Shares of

tumbled around 11 percent in after-hours trading after the company reported weaker-than-expected results for the first quarter. The Philadelphia, Pennsylvania-based company posted quarterly earnings of $32.8 million, or $0.25 per share, compared to $37.5 million, or $0.26 per share, in the year-ago period. Its total sales climbed to $739 million from $686.3 million. However, analysts were expecting a profit of $0.30 per share on revenue of $758.25 million. The average estimate among 32 Estimize users was for earnings of $0.31 per share and revenue of $761.30 million. Its comparable retail segment net sales rose 4 percent in the quarter. Comparable retail segment net sales climbed 17 percent at Free People, 1 percent at the Anthropologie Group and 5 percent at Urban Outfitters. Wholesale segment net sales surged 18 percent in the quarter. Its selling, general and administrative expenses as percentage of net sales rose by 13 basis points versus the year-ago quarter. As of April 30, 2015, Urban Outfitters' total inventories rose 14 percent year-over-year. During the first quarter, Urban Outfitters repurchased 0.4 million shares for around $17 million. During the quarter, the company opened a total of 7 new stores and closed 1 Urban Outfitters store. "I am pleased to announce record first quarter sales and positive Retail segment comparable net sales at each of our brands," said Richard A. Hayne, Chief Executive Officer. "I believe our Retail segment comparable net sales growth is being driven by the success of our omni-channel strategy," finished Mr. Hayne. Urban Outfitters shares dropped 11.32 percent to $36.10 in the after-hours trading session.