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Urban outfitters lower following earnings report

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Urban Outfitters reported mixed quarterly earnings. The fashion retailer reported revenue that was in line with estimates at $1.09B. The company also reported an adjusted EPS of 30 cents, beating the estimated EPS of 29 cents. Yahoo Finance's Jared Blikre joined Yahoo Finance Live to break down the key metrics.

Video Transcript

ADAM SHAPIRO: All right, earnings season continues. Retailers reporting, Urban Outfitters the latest, and those shares are selling off. Jared Blikre, what happened?

JARED BLIKRE: The stock is down 2%. The revenue top line number came in as expected-- exactly as expected-- 1.09 billion. Adjusted EPS was a beat. That came in at $0.30 versus estimates of $0.29. So, beat by a penny. Was $0.50 a year ago, so a little bit decreased from that. Gross margin coming in a little bit light. This might be what's accounting for some weakness in the stock right now in after hours trading. That came in at 26.6%. Street's estimate was for higher at 27.4%. And their inventory number, that's 389.6 million, down about 5% year over year.

And then just taking a look at some of the comps here, so comps storewide were down 7%. And as it breaks down by their different store names, they were actually up 6% at Free People, but they were down 6% at Urban Outfitters and down 11% at Anthropology Group.

Here's a quote from Richard Hayne, the CEO. Says, as we begin our new fiscal year, we are encouraged by the positive sales results. All three brands delivered in North America, quarter to date. We're particularly excited by the recent uptick in demand for going out type apparel. And I believe this bodes well for our spring and summer season. So, again, the number is roughly coming in, in line, but those margins looking a little bit weak. Seeing the stock down 2% in after hours trade.