Proactive Investors - Urban Outfitters, Inc. (NASDAQ:URBN) shares shed over 10% in pre-market trading after the clothing retailer said yet another quarter of dwindling sales had it reviewing some stores.
Comparable sales fell by 13.6% at Urban Outfitters, the firm reported after hours on Tuesday, but rose by 18.9% and 12.0% at its Free People and Anthropologie sites respectively.
“All areas” of the Urban Outfitters branded chain are under review as a result, chief executive Dick Hayne revealed on an earnings call.
Shoppers are “not as exuberant as they were when first coming out of the pandemic,” he warned.
“They don’t have as many weddings and events to attend. They are less apt to move and have recently refurbished their living spaces.
“So demand for categories like dress or footwear and home furnishings are trending softer.”
Though he reassured consumers remained optimistic, news of lower same-store sales comes after two years of high inflation have squeezed shoppers’ spending.
The upcoming quarter will likely see sales decline at a similar rate therefore, though continued strength at Anthropologie and Free People, which cater for a wealthier demographic, should drag the figure up by “low-single digits” overall.
For the fourth quarter, adjusted earnings per share came in at US$0.69, below consensus estimates for US$0.74.
Revenue also missed expectations, sitting 7.3% higher than a year earlier at US$1.486 billion, but against an expected US$1.499 billion.
Shares slipped 10.6% to US$42.16 in pre-market trading.