Urban Outfitters warns sales slump could weigh on 3rd-quarter earnings

Associated Press

Urban Outfitters Inc. said Thursday that an ongoing sales slump could hurt its third-quarter earnings, which sent its shares plunging in extended trading.

The Philadelphia-based retailer has delivered strong sales gains at its Anthropologie and Free People brands recently, but its namesake brand has floundered.

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Urban said Thursday that negative sales from established stores, a key industry measure, have extended into the current quarter. And that could weigh on its gross profit margin and ultimately, its earnings for the third quarter.

The company did not provide a specific earnings forecast. Analysts surveyed by FactSet expect the retailer to earn 50 cents per share on revenue of $835.6 million.

Shares of the Philadelphia-based company sank 13 percent to $30.01 in extended trading following the warning. The stock is trading near the low end of its 52-week trading range of $32.23 to $40.67.