Investing.com -- Shares in Urban Outfitters Inc (NASDAQ:URBN) plunged more than 15% in after-hours trading, after the multinational clothing company posted worse than expected earnings in the first quarter.
A combination of higher delivery costs and lower margins weighed on the Philadelphia-based retailer, as Urban Outfitters earned a net profit of $32.8 million or 0.25 per share. By comparison, the company earned a net profit of $37.5 million or 0.26 per share during the same period in 2014. Urban Outfitters' gross margin during the quarter dipped to 33.3% from 34.8% over the first quarter last year.
Urban Outfitters posted revenues of $739 million for the three-month period ended on April 30, a 7.7% spike from the first quarter a year earlier. The company fell short of analysts' forecasts of $758 million in revenue and a 0.30 EPS.
In terms of the company's comparable net sales, which includes its direct-to-consumer channel, Urban Outfitters reported a 4% gain, including a 17% increase among its Free People brand.
"I am pleased to announce record first quarter sales and positive Retail segment comparable net sales at each of our brands," Urban Outfitters CEO Richard A. Hayne said in a statement. "I believe our Retail segment comparable net sales growth is being driven by the success of our omni-channel strategy."
Urban Outfitters, which operated 179 stores in the U.S., along with another 16 in Canada and 43 in Europe as of late-January, has been opening new stores at a regular clip over the last several quarters. In March, shares in the company hit an all-time high at $47.25.
On Monday, Urban Outfitters shares fell 6.40 points or 15.27% to 34.58.