Urban Outfitters, Inc. (NASDAQ:URBN) stock was down on Monday following the release of its holiday sales report.
The first factor is that Urban Outfitters, Inc. faced a larger than expected shift in demand by channel. The company says this was caused by lower store traffic and lower sales. This resulted in it increasing promotional activity to increase demand.
The second factor that hurt Urban Outfitters, Inc.’s Wholesale segment sales was a larger than anticipated shift in product mix. This had more customers going after lower margin products and categories.
Total net sales reported by Urban Outfitters, Inc. during the two months that ended on Dec. 31, 2016 were up by 3%. Net sales from Urban Outfitters increased 3.6%, net sales were up 2.9% at Free People and net sales were down 1.0% at the Anthropologie Group.
According to Urban Outfitters, Inc., comparable Retail segment sales saw an increase due to double-digit growth in the direct-to-consumer channel. However, the company notes that this was partially offset by retail store comparable net sales being lower than expected.
Urban Outfitters, Inc. says that net sales in the 11 months ended on Dec. 31, 2016 were up 3% from the same period last year. Comparable Retail segment net sales were up by 1.3% during this time and Wholesale segment net sales increased by 12%.
URBN stock was down 2% as of Monday afternoon.