Urban Outfitters (NASDAQ:URBN) reported late on Monday stronger third-quarter sales that missed Wall Street expectations, as the apparel retailer continued to reel from weaker demand at its Anthropologie stores.
The Philadelphia-based company said David McCreight will take over as chief executive of the troubled Anthropologie group, effective Nov. 15. The retailer has been struggling to reposition its merchandise, and has faced its greatest challenges at Anthropologie.
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The operator of Urban Outfitters and Free People brands, which will announce quarterly earnings on Nov. 14, said sales during the latest quarter were up 6% to $610 million, but fell short of average analyst estimates polled by Thomson Reuters of $629.2 million.
Same-store sales, or those at stores open longer than a year, were down 7%, hurt particularly by a 7% drop in those sales at Antropologie.
The bleak report led several analysts Tuesday morning to lower their price target on Urban Outfitters. Jefferies cut the retailer to $17 from $19, Roth Capital slashed its price target to $29 from $30 and Nomura reduced the target to $28 from $30.