(Business Insider/Hayley Peterson)
Urban Outfitters shares fell by more than 14% in early trading on Tuesday after the clothing retailer reported earnings below investors' expectations.
After the closing bell on Monday, the company reported first quarter earnings of $0.25, below analysts' estimates of $0.30, according to Bloomberg.
The company posted record sales of $739 million, but these still came in below expectations for $757.58 million.
"I am pleased to announce record first quarter sales and positive retail segment comparable net sales at each of our brands," said CEO Richard Hayne in the release. "I believe our retail segment comparable net sales growth is being driven by the success of our omni-channel strategy."
On Tuesday, Oppenheimer analysts downgraded the stock to "Perform" from "Outperform," with a 12-month price target of $35. (The stock opened at $35 per share on Tuesday.)
Anna Andreeva and Janet Knopf wrote: "Seldom do all brands work at the same time for fashion retailers, and after six quarters of challenges, improvement at Urban division is offset by fashion misses at Anthropologie, causing both sales and margin miss in 1Q15."
Same-store sales rose 4%, below expectations for an increase of 5.1%. During the quarter, the company opened seven new stores, and closed one Urban Outfitters store.
Sales climbed 5% at Urban Outfitters stores, 17% at Free People, and 1% at Anthropologie.
It's been a rough quarter for retailers including Macy's and JCPenney, which posted earnings below analyst expectations.
Here's a chart showing the drop in shares:
More From Business Insider