Urban Outfitters Inc. (NASDAQ: URBN) joins the growing list of retailers that are on the decline after announcing their holiday sales. We have already seen the same reaction from J.C. Penney, Kohl’s, Macy’s and more, as it seems more consumers are shopping online now.

Total company net sales for the two months ended December 31, 2019, increased 2.9% over the same period last year. Comparable Retail segment net sales increased 3%, driven by growth in the digital channel, partially offset by negative retail store sales.

By brand, comparable Retail segment net sales increased 8% at Free People and 5% at the Anthropologie Group and decreased 1% at Urban Outfitters.

Total Retail segment net sales increased 3%. Free People’s exceptional Retail segment performance was driven by strong, full price sales, as the brand was less promotional during the holiday season.

Anthropologie and Urban Outfitters businesses were driven in part by increased promotional activity in apparel, which will put greater pressure on our fourth-quarter gross profit margin than originally anticipated.

Wholesale segment net sales decreased 9% due to an 11% decrease in Free People, which was greater than projected. Lastly, in order to meet customer delivery expectations, the company spent more on delivery and logistics expenses than originally planned.

Shares of Urban Outfitters traded down over 5% on Friday to $26.12, in a 52-week range of $19.63 to $34.24. The consensus price target is $27.63.

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