Apr 4, 2011
Urban Outfitters sees sales slip so far this year
Apr 4, 2011
April 4 - Urban Outfitters Inc has seen sales slip so far this year, even as it fights higher raw material costs and discounts heavily to clear out off-season merchandise.
In a filing dated April 1, the company said so far during the first quarter, comparable retail segment net sales were down in the low single-digits.
Urban Outfitters store from the outside
Last month, Urban Outfitters posted its first quarterly earnings miss in almost two years, and analysts were worried that the usually fashionable retailer was fallen behind current trends.
Analyst Elizabeth Pierce of Roth Capital Partners lowered her earnings estimates for the company by 1 cent to 28 cents, but kept a "buy" rating on the stock.
Analyst Pierce said the current same-store sales trend was below her estimates, but that Urban Outfitters works its way through the ongoing fashion shift.
Urban Outfitters store from the inside
"Furthermore, given the advanced supply chain and relatively short lead times, we believe Urban Outfitters continues to tweak its already unique offering," she write in a note to clients.
Shares of the retailer were trading nearly flat at $30.35 on Nasdaq on Monday morning.
(Reporting by Nivedita Bhattacharjee in Bangalore; Editing by Gopakumar Warrier)
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