Urban Outfitters' Stock Plunges After Profit, Sales Disappoint

Urban Outfitters Inc.'s stock plunged 11% in after-hours trade Monday, after the apparel retailer reported fiscal first-quarter profit and sales that missed expectations. For the quarter ended April 30, earnings fell to $32.8 million, or 25 cents a share, from $37.5 million, or 26 cents a share, in the same period a year ago. The FactSet consensus for earnings per share was 30 cents. The company said the gross profit rate declined because of lower margins at its Urban Outfitters brand stores and higher delivery costs. Total sales rose to $739 million from $686.3 million, as same-store sales increased 4%, but missed the FactSet consensus of $758 million and 5.2% growth, respectively. Among its store brands, same-store sales at Urban Outfitters rose 5%, at Free People climbed 17% and at Anthropologie increased 1%, compared with expectations of growth of 4.1%, 12.3% and 4.5%, respectively. The stock had surged 16% year to date through Monday's close, compared with a 3.8% rise in the SPDR S&P Retail ETF and a 3.4% gain in the S&P 500.