Urban Outfitters shares fell Wednesday soon after the organization posted earnings that skipped by a penny and analysts cut their selling price targets on the inventory.
At least 8 brokerages cut their selling price targets on Urban’s inventory, according to Reuters.
Shares briefly dropped more than 5 p.c to lows not observed considering that February 2016.
The clothes retailer documented fourth-quarter earnings for every share of fifty five cents on Tuesday, missing estimates by a penny. Revenue was in line at $1.03 billion compared to the $1.04 billion predicted by a Thomson Reuters consensus.
Gross profit margins fell to 33 p.c for the quarter, down from 34.5 p.c in the calendar year-back interval.
Identical-keep revenue rose 1.2 p.c at Urban Outfitters merchants and 1.2 p.c at Free of charge Individuals places, but fell 2.nine p.c at the retailer’s Anthropologie merchants.
Urban Outfitters CEO Richard Hayne mentioned on the company’s earning get in touch with that the retail house is oversaturated and clothes merchants are having as well significantly physical square footage in contrast to destinations like EuropeorJapan.
“This made a bubble, and like housing, that bubble has now burst,” Hayne mentioned. “We are viewing the success: Doorways shuttering and rents retreating. This craze will proceed for the foreseeable long term and might even accelerate.”
Shares of Urban Outfitters have been previous buying and selling about 2.5 p.c decrease and are down 30 p.c around the previous 3 months.
Urban Outfitters shares 3-month general performance