Urban Outfitters Reports Improved Holiday Sales

Shares of Urban Outfitters were slumping pre-market Monday after the apparel retailer issued guidance warning about a gross margin deleverage while reporting improved sales over the winter holiday season.

The company said net sales over the two months ended Dec. 31 were up 3% year-over-year, with comparable retail sales up 1.5%. Over the eleven months ended Dec. 31, total net sales were up 3%, with comparable retail sales and wholesale segment sales gaining 1.3% and 12%, respectively.

Urban Outfitters said it expects total gross margins to deleverage more than previously expected due to a larger-than-expected shift in demand by channel and a larger-than-expected shift in product mix.

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