Urban Outfitters Shares Slide On Weak Q3 Sales

Shares of

dropped over 6 percent in after-hours trading after the company reported downbeat sales for the third quarter. However, the company reported in-line quarterly earnings. The Philadelphia, Pennsylvania-based company reported quarterly net income of $52 million, or $0.42 per share, compared to $47.1 million, or $0.35 per share, in the year-ago period. Its net sales rose to $825.3 million from $814.5 million. However, analysts were expecting earnings of $0.42 per share on revenue of $872 million. The average estimate among 73 Estimize users was for earnings of $0.41 per share and revenue of $869.53 million. Comparable retail segment net sales rose 1 percent for the quarter. Comparable retail segment net sales climbed 3 percent at Free People, and gained 1 percent at Urban Outfitters. However, comparable retail segment sales came in flat at the Anthropologie Group. As of October 31, 2015, total inventories dropped 5 percent year-over-year. During the nine months ended October 31, 2015, Urban Outfitters opened a total of 23 new stores. "I am pleased we delivered sales, margin and profit growth in the third quarter despite weaker customer traffic," said Richard A. Hayne, Chief Executive Officer. "I believe the strong customer response to expanded category offerings at each brand bodes well for our future growth," finished Mr. Hayne. Urban Outfitters shares fell 6.53 percent to $21.19 in the after-hours trading session.