Why Urban Outfitters Stock Was Falling Today
Shares of Urban Outfitters (NASDAQ: URBN) were sliding today after the apparel retailer posted a disappointing preliminary first-quarter earnings report Tuesday night. Sales fell sharply as the company was forced to close stores across the country due to the COVID-19 pandemic. As of 10:34 a.m. EDT on Wednesday, the stock was down 7.3%.
Revenue in the quarter fell 31.9% to $588.5 million as comparable-store sales plunged at all three of its core brands. At Free People, Urban Outfitters, and Anthropologie, they were down 19%, 24%, and 33%, respectively. Overall comps declined 28%, and wholesale revenue, which normally makes up about 10% of the business, tumbled 74%.
Investors may have also been disappointed that online sales grew by just low double digits in the quarter, since they may have been hoping to see a surge with stores closed. That's not so surprising, however, as apparel sales have been weak across the board in retail with Americans focused on shopping for essentials and having little reason to purchase new clothes.
Source Fool.com
