Urban Outfitters, Inc. (NASDAQ:URBN) stock was hit hard on Thursday after the company released a filing with the U.S. Securities and Exchange Commission (SEC).
In the 10-Q filing with the SEC, Urban Outfitters, Inc. provided an updated on how sales were progressing during its fiscal second quarter of 2018. In this filing, the apparel retailer said that comparable net sales for its retail segment are down by high single-digits.
News that comparable net sales in its second fiscal quarter of 2018 are down this much is likely what is driving the stock down today. It also comes after Urban Outfitters, Inc. reported declining comparable net sales during its fiscal first quarter of 2018 last month.
During its fiscal first quarter of 2018, Urban Outfitters, Inc. reported comparable net sales that were down 3.1% when compared to the same time last year. It also reported earnings per share of 13 cents on revenue of $761.2 million. Wall Street was expecting it to report earnings per share of 16 cents on revenue of $772 million.
For its fiscal second quarter of 2018, analysts are expecting Urban Outfitters, Inc. to report earnings per share of 44 cents on revenue of $892.63 million. Judging by the SEC filing released today, it is unlikely that URBN will meet those expectations.
Urban Outfitters, Inc.’s poor performance lately is part of a larger trend. Many other physical retailers are also facing troubles. Gander Mountain and The Limited Stores are two retailers that have filed for bankruptcy recently. There’s also talk that Sears Holdings Corp (NASDAQ:SHLD) is in danger of bankruptcy.
URBN stock was down 7% as of Thursday afternoon and is down 40% year-to-date.
