Urban Outfitters Inc. (URBN) stock plunged down 11.75% in the after-market, at $32.89 on November 22. During the previous trading session, the stock gained 3.04%, to close at $37.27 on Monday. Intraday trading, the stock moved between $36.61 and $38.04, at a volume of 4.12 million. The day’s volume was up by 220% from the stock’s 65-day average volume of 1.87 million. While in the after-hours, the stock traded at a volume of 966.9 thousand shares in the market. In the past week, the stock gained a mere 1.00%, while gaining 18.06% in the past month. Moreover, the stock has gained a value of 45.59% year to date. Currently, URBN trades at a market capital of $3.56 billion with 98.36 million shares outstanding. The after-market decline in the stock was seen after the company posted its third-quarter financial results on November 22.
Urban Outfitters Inc. (URBN) is a leading lifestyle products and services company, which operates a portfolio of global consumer brands.
URBN’s Q3 Earnings Report
On November 22, 2021, URBN announced its financial results for the three and nine months ended October 31, 2021. As per Q3 of 2021, the net sales were $1.13 billion, showing an increase of 14.6% from the same quarter of 2019. The comparable Retail segment net sales showed an increase of 14% due to growth in digital channel sales. While it was partially offset by reduced store traffic causing mid-single-digit negative retail store sales. Moreover, the wholesale segment net sales showed a decline of 15%.
Furthermore, the net income was $89 million for the three months ended October 31, 2021. While the net income for the nine months ended October 31, 2021, was $270 million. Consequently, URBN’s net income per basic and diluted share was $0.89 for the three months ended October 31, 2021. And it was $2.71 for the nine months ended October 31, 2021. The Q3 EPS beat the consensus estimate of $0.77 per share.
Why the stock still go down?
Even after posting better than expected Q3 earnings results, URBN stock still saw a decline in the after hours. The reason for the decline was the inconsistent comparable sales. Despite the strong retail segment and digital segment sales, the wholesale segment and retail store sales showed a decline. The shareholders expected a better recovery in sales from the company, which URBN did not fulfill. Hence, the stock went down in the after-hours after the Q3 earnings were posted.
