Urban Outfitters Inc (URBN)

Shares of Urban Outfitters, Inc. (URBN) dropped by 12.37% from $36.31 to $31.82 in the trading on Wednesday, November 22, 2023. The reason why URBN is down today is due to the company report a sharp drop in comparable sales at its namesake brand. Despite reporting third-quarter 2023 earnings per share (EPS) of $0.88, surpassing the previous year's $0.40 and exceeding consensus estimates of $0.82, the stock faced a substantial drop. The positive EPS performance was driven by improved sales growth and an expansion in gross margins. However, challenges emerged as consumer demand slightly slowed in October compared to August and September, with November following a similar trend. Furthermore, the company's effort to re-engage with its target demographic led to elevated inventory levels at the UO brand, potentially impacting Q4 margins. These factors collectively contributed to the significant decline in Urban Outfitters, Inc.'s stock price on that trading day.