Shares of Urban Outfitters Inc. fell in extended trading Wednesday after the clothing retailer reported second-quarter same-store sales that missed expectations, as shoppers at its namesake stores continue to struggle with higher prices that have crimped demand for clothing.
The company - which also owns Anthropologie and Free People - reported second-quarter net income of $117.5 million, or $1.24 a share, compared with $104.1 million, or $1.10 a share, in the same quarter last year.
Revenue increased 6.3% year over year to $1.35 billion.
Same-store sales were up 2%, led by a 7.1% gain at Free People and a 6.7% increase at Anthropologie. The company's Urban Outfitters stores, meanwhile, continued to struggle, with same-store sales falling 9.3%.
Analysts polled by FactSet expected Urban Outfitters $(URBN)$ to report GAAP earnings per share of 97 cents and adjusted earnings per share of $1, on $1.34 billion in revenue and a 3% same-store sales gain.
Shares fell 8% after hours. The stock is still up 16.2% so far this year.
Even as higher prices at grocery stores keep people from buying clothing, Anthropologie and Free People - both of which are geared toward a higher-income female shopper - have done the heavy lifting for the company. They've grown sales, while Urban Outfitters stores - which target a younger consumer potentially hit harder by inflation - have struggled to stay more relevant.
The company this year has said it is reviewing "all areas" of its namesake stores. And clothing retailers are also trying to meet demand for shifting trends, which have currently leaned toward looser-fitting pants and smaller, tighter tops.
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