Why Urban Outfitters, Berry Petroleum, and McEwen Mining Slumped Today
Major benchmarks gave up ground on Wednesday, reacting negatively to new concerns about delays in the U.S. and China reaching a tentative trade deal. Investors have been counting on an agreement that would make at least some progress in the long dispute between the two countries, but those following the situation seem to be reining in their optimism. Adding to the downbeat mood on Wall Street was some company-specific news that sent some stocks sharply lower. Urban Outfitters (NASDAQ: URBN), Berry Petroleum (NASDAQ: BRY), and McEwen Mining (NYSE: MUX) were among the worst performers. Here's why they did so poorly.
Shares of Urban Outfitters dropped 15%, succumbing to the same adverse trends that have plagued many of its industry peers. The avant garde retailer managed to see modest revenue growth in the third quarter compared to year-earlier figures, but its physical store locations posted declines in comparable-store sales. Urban Outfitters has been able to sustain overall growth by emphasizing its digital channel. But shareholders are now concerned about fairly high levels of inventory that could necessitate significant markdowns during the key holiday season. Combine that with tariff pressures and worries about the health of the U.S. consumer, and it's not surprising to see Urban Outfitters' shares losing some ground.
Image source: Urban Outfitters.
Source Fool.com
