Urban Outfitters said holiday season net sales declined 8.4% year over year, while comparable retail-segment sales fell 9%.
The company said that Chief Executive Trish Donnelly would step down at the end of the month to pursue another opportunity. She'll be succeeded by Sheila Harrington, who will take over the company's Urban Outfitters and Free People brands.
Urban Outfitters shares at last check were off 8% at $27.89.
Here's what Wall Street is saying:
Analysts at RBC Capital affirmed a sector-perform rating on Urban Outfitters while lowering their price target to $28 a share from $30 share.
Telsey analysts called the results "disappointing" as the holiday and post-holiday period is often "evidence of the underlying brand health across the business." The firm affirmed its outperform rating and $35 price target.
Jefferies analysts maintained a buy rating on the stock and lowered their price target to $36 from $37. They also called the results disappointing, with Jefferies expecting "strong digital presence and outsized exposure in home to largely offset store weakness and ongoing softness in apparel at" Anthropologie.
B Riley analysts affirmed a neutral rating and $29 price target on the stock. The firm cited "in-store traffic weakness, further weakness at [Anthropologie] due to covid, and potential inability to renegotiate longer-term lease agreements to lower store costs."