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Urban Outfitters shares plunge amid weak same-store sales trend

A shopper exits an Urban Outfitters store in New York.
Michael Nagle | Bloomberg | Getty Images

Shares of Urban Outfitters shed more than 5 percent Friday after the firm revealed that same-store sales, a key measurement for retailers, were falling this quarter.

The company said in a Securities and Exchange Commission filing that fiscal second-quarter comparable sales for its retail segment were down a "mid single-digit" percentage. Analysts had expected Urban's same-store sales to grow 0.2 percent for the quarter, according to StreetAccount.

Urban Outfitters' stock was down 20.6 percent over the past year entering Friday's session, but had gained more than 22 percent year to date.

URBN 2016 chart

Source: FactSet

Analysts at Stifel cut their second-quarter earnings estimate to 55 cents a share from 58 cents, but added they remain bullish in the stock long term.

"We remain favorable regarding the long-term outlook of the company driven by: a talented management team, significant growth opportunities, industry leading omni-channel capabilities and strong brand equity fueled by highly differentiated merchandise assortments that resonate well with each brands targeted customers," they said in a Thursday note to clients.

Disclosure: Stifel makes a market in Urban Outfitters' stock.

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