Why Urban Outfitters Stock Just Crashed 10%
Urban Outfitters (NASDAQ: URBN) stock tumbled 10% through 10:10 a.m. ET Thursday morning, despite the company beating analyst forecasts for second-quarter sales and earnings last night.
Heading into the results, analysts forecast the teen retailer would earn $1 per share on sales of $1.34 billion. In fact, profits were a superb $1.24 per share, and sales edged out the consensus estimate at $1.35 billion. Sales grew 6% year over year, and profits were up twice that -- 13%.
That's the good news. Now here's the bad: While sales grew nicely in three of Urban Outfitters' four biggest brands (Anthropologie, Free People, and Nuuly), same-store sales at Urban Outfitters stores themselves declined 9.3%, which as CNBC points out, was worse than expected, and total Urban Outfitters sales slid 8.6%.
Source Fool.com
