Urban Outfitters' Comparable Sales Growth Disappoints

EarningsReuters

Apparel retailer Urban Outfitters Inc's comparable sales rose far less than expected in the third quarter due to weaker demand for its Anthropologie brand, sending its shares down 7.6 percent in extended trading.

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The Philadelphia-based retailer said third-quarter comparable sales at Anthropologie, its biggest brand by sales, was flat in the quarter ended Oct. 31.

Analysts polled by research firm Consensus Metrix had expected the brand to grow 1.60 percent.

The company reported third-quarter comparable sales growth of 1 percent, also lower than the 3.40 percent rise analysts had expected.

Analysts have said the long spell of warm weather in September and October, which hurt sales of cold weather apparel like coats and jackets, could also affect retailers like Urban Outfitters Inc.

The company's net income rose to $52 million, or 42 cents per share, in the third quarter from $47.1 million, or 35 cents per share, a year earlier.

Analysts on average had expected earnings of 42 cents, according to Thomson Reuters I/B/E/S.

Net sales rose 1.3 percent to $825.3 million, well below the $869.8 million analysts expected.

Urban Outfitters shares closed down 7.4 percent at a four-year low of $22.67 on Monday on the Nasdaq.

(Reporting by Subrat Patnaik in Bengaluru; Editing by Don Sebastian)