Urban Outfitters (URBN) Stock Nosedives in After-Hours Trading Following Q3 Results
NEW YORK (TheStreet) -- Urban Outfitters (URBN) - Get Report stock is plunging by 7.34% to $21 in after-hours trading on Monday, following the company's third quarter fiscal 2016 earnings results reported after the market closed today.
Earnings for the latest quarter ended October 31 came in at 42 cents a share, in line with analysts' forecasts.
Revenue was $825 million, below projections of $872 million.
In the same period the year before, the company earned 35 cents share on revenue of $814.5 million.
Even though the company's recent profits were negatively impacted by weaker customer traffic, the company said that year-over-year net sales grew, helped by a slight increase in sales at its comparable retail segment--specifically at Free People and Urban Outfitters by 1% and 3%, respectively.
However, sales at the Anthropologie Group were flat.
"I believe the strong customer response to expanded category offerings at each brand bodes well for our future growth," CEO Richard A. Hayne stated.
Earlier this morning, the company announced that it will acquire The Vetri Family group of restaurants, which includes the Pizzeria Vetri chain. Following this announcement, the stock took a beating as investors had a hard time swallowing its decision to get into the restaurant business.
Based in Philadelphia, Urban Outfitters is a lifestyle specialty retail company that engages in the retail and wholesale of general consumer products.
Separately, TheStreet Ratings team rates URBAN OUTFITTERS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
We rate URBAN OUTFITTERS INC (URBN) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.
You can view the full analysis from the report here: URBN
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