Urban Outfitters Inc.'s stock were indicated down more than 10% in premarket trade Monday, after the apparel and lifestyle merchandise retailer said same-store sales at its retail stores during the holidays were less than expected, which prompted the company to increase promotional activity. The company, which store brands include Anthropologie, Free People and Urban Outfitters, said total sales for the two months ending Dec. 31 increased 3% over the same period a year ago. Total same-store sales rose 1.5%, as a double-digit percentage increase in direct-to-consumer sales was partially offset by lower-than-expected retail same-store sales. Same-store sales increased 3.6% at Urban Outfitters stores and 2.9% a Free People stores, but fell 1% at Anthropologie. The company said it expects gross margins to be affected more than previously expected as lower store sales required higher promotional activity to boost demand. The stock has plunged 25% over the past three months through Friday, while the SPDR S&P Retail ETF has slipped 0.3% and the S&P 500 has gained 5.7%.
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