NEW YORK (TheStreet) -- Urban Outfitters (URBN) - Get Report stock is plunging 12.53% to $19.83 on Tuesday morning after the apparel retailer reported its third quarter 2016 financial data after the markets closed on Monday.
Even though earnings for the latest quarter, which came in at 42 cents a share, were in line with analysts' projections, revenue of $825 million fell below estimates of $872 million.
In the same quarter last year, the company reported earnings of 35 cents share on revenue of $814.5 million.
Additionally, comparable-store sales increased 1% year-over-year, but this missed expectations of a 3.4% rise.
The company also announced yesterday that it will acquire The Vetri Family group of restaurants, which includes the Pizzeria Vetri chain. Following this announcement, the stock tumbled.
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