URBN - Why Urban Outfitters Stock Sank 14% Today
2024-02-28 11:30:16 ET
Shares of Urban Outfitters (NASDAQ: URBN) were down by about 14% as of 11:25 a.m. ET Wednesday after the teen clothier reported a fourth-quarter earnings miss Tuesday afternoon.
Wall Street had been expecting the retailer to report a profit of $0.74 per share (adjusted for one-time items) on sales of $1.5 billion. Urban Outfitters nailed the sales target, but missed by a nickel on adjusted earnings, reporting $0.69 per share.
On a GAAP (generally accepted accounting principles) basis, Urban Outfitters' earnings were even lower. As management explained in the earnings report, GAAP profits for Q4 were only $0.50 per share, hurt by "store impairment and lease abandonment charges, an asset impairment charge and a change in revenue recognition method for Nuuly."
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Why Urban Outfitters Stock Sank 14% Today