Urban Outfitters sinks after earnings miss

Its gross margin was 33 percent in the period, compared with an estimate of 33.5 percent. (NASDAQ:URBN) are projecting that the shares reach $32.7 within the next 12-18 months. Now that two additional mall mainstays – Express and Urban Outfitters – one CEO is saying that retailers have no one to blame but themselves.

The share price of the company (NASDAQ:URBN) was down -3.23% during the last trading session, with a high of 26.97 and the volume of Urban Outfitters, Inc. shares traded was 2761735. The stock appeared $30.66 above its 52-week highs and is up 1.92% for the last five trades.

In the last Quarter, Urban Outfitters Inc. Further, the company is making all possible efforts to enhance their performance. (NASDAQ:URBN)’s last 12 earnings reports, it has beaten EPS estimates 41% of the time.

For the full year, earnings slid 2.8 percent to $218.1 million, or $1.86 a diluted share, on a 2.9 percent drop in sales, to $3.55 billion.

While net sales increased 2% over the same quarter previous year, comparable retail segment net sales remained flat. The Retail segment also includes Vetri Family, which operates restaurants under the names Amis, Alla Spina, Lo Spiedo, Pizzeria Vetri and Osteria. There was a stock decrease by -1.05 percent. That, coupled with years of overbuilding has led to dismal comparable sales results for specialty clothing stores and department stores in particular.

“With lower initial markups, more markdowns and expense deleverage, EBIT margins shed 180 basis points”, the analyst concluded in his research note.

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Urban Outfitters Inc.is now showing 4.8% EPS growth this year. The company believes its store count for Urban Outfitters and Anthropologie to be at a satisfactory number, while that of Free People, now at 127 stores, to be nearing the North American desired total. The company intends on opening 18 new stores during FY 2018 (ended January 2018), while closing 7 stores due to lease expiration. Norges Bank acquired a new position in shares of Urban Outfitters during the fourth quarter valued at about $27,485,000. The food and beverage division is also planning to open one restaurant. The company warned that it may post a loss this quarter, surprising analysts. The business had revenue of $862.50 million for the quarter. For fiscal 2018, management anticipates capital expenditures of $90 million. That puts total institutional holdings at 92,679,850 shares, according to SEC filings. The company’s shares were given away at $37.42 per share worth to an income of some $149,680 on account of Conforti Frank. The company still has 6 million shares remaining under its 20 million share repurchase authorization. (PLCE – Free Report) and Genesco Inc.

This year, the company showed a solid 5.6 percent of growth. On seventh day of the earnings report price change of the stock was -16.89%. For the same period, its EPS moved at an average growth rate of 13.90%.