Controversy isn’t paying off for Urban Outfitters.
Shares of the hipster clothier, which recently got blasted for selling a bloody Kent State sweatshirt that recalled connections to the 1970 student massacre, tumbled 4.8 percent in after-market trading, to $29.35, on worse-than-expected quarterly profit.
Comparable sales at the chain dropped 7 percent after plunging 10 percent in the previous quarter. That decline more than offset gains at the company’s smaller Free People and Anthropologie chains.
Third-quarter revenue rose 5 percent, to $814 million, but net income dropped by nearly a third to $47 million, or 35 cents a share, as margins got clobbered on heavy markdowns.
Analysts had expected earnings per share of 42 cents a share, according to Thomson Reuters.