Urban Outfitters (URBN) Stock Slumping in After-Hours Trading on Earnings Miss

NEW YORK (TheStreet) -- Shares of Urban Outfitters Inc. (URBN) are down by 11.63% to $35.10 in after-hours trading on Monday, following the release of the clothing and accessories retailer's fiscal 2016 first quarter earnings results, which fell short of analysts' estimates for the period.

Urban Outfitters said it earned 25 cents per diluted share for the quarter ended April 2015. Analysts polled by Thomson Reuters had forecast for earnings of 30 cents per share.

For the year ago first quarter Urban Outfitters said it earned 26 cents per diluted share.

Total net sales grew by 8% over the same period last year to $739 million versus the $758 million analysts were looking for.

Despite the earnings decline and miss the company is happy with some of its financial results for the latest quarter.

"I am pleased to announce record first quarter sales and positive retail segment comparable net sales at each of our brands. I believe our retail segment comparable net sales growth is being driven by the success of our omni-channel strategy," Urban Outfitters CEO Richard Hayne said in the company's earnings statement.

Separately, TheStreet Ratings team rates URBAN OUTFITTERS INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate URBAN OUTFITTERS INC (URBN) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, increase in stock price during the past year and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income."

You can view the full analysis from the report here: URBN Ratings Report

URBN Chart URBN data by YCharts

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