Shares of Urban Outfitters Inc. (NASDAQ:URBN) were down 5.1% as of 1:20 p.m. EDT Thursday despite no company-specific news. Rather, the move appears to be in response to disappointing quarterly reports from several of the clothing retailer's peers.
Urban Outfitters won't report second-quarter earnings until next Tuesday, Aug. 15. But if discouraging results from Macy's, Kohl's, and Dillard's are any indication -- shares of the three department store chains are down nearly 10%, 6%, and more than 17% so far today, respectively, in response to their own reports -- it's hard to blame Urban Outfitters shareholders for fearing it may follow suit in today's difficult retail climate.
Urban Outfitters is a unique concept and may not be directly susceptible to the same headwinds that are hurting those department stores, so there's always a chance it has found a way to deliver relative outperformance. And the bar is set low; when Urban Outfitters reports next week, Wall Street will be looking for a 3.2% year-over-year decline in revenue to $862 million, which should translate to earnings of $0.37 per share (down from $0.66 per share in the same year-ago period).
For now, Urban Outfitters investors can only hurry up and wait for their company to report. But in the meantime, if it manages to beat expectations, today's pullback could be a great chance to open or add to a position.