Urban Outfitters’ share price plummets as it unveils baffling pizza chain acquisition
It turns out hipsters are as discerning about their food as they are about their outfits.
Shares in US retail giant URBN, parent company of ultra-hip retailer Urban Outfitters, plummeted more than 10 per cent to $20.40 in out-of-hours trading after it announced the rather confusing decision to buy a pizza restaurant chain.
In a statement Marc Vetri, founder of the Vetri Family group of restaurants, which includes Pizzeria Vetri, said the pair were a "perfect match".
Investors didn't agree. Last night's share price drop was on top of a 7.8 per cent fall during the day. Shares have now lost more than 50 per cent of their value since March this year.
But Vetri said the two sides "share the same singular goal".
"We pride ourselves on bringing the best possible experience to our customers and community.
"Through this partnership, and the experience URBN has in scaling growth opportunities, the Vetri Family will now be able to focus on what we do best – run restaurants that make people happy.”
Richard A Hayne, Urban Outfitters' chief executive, added: "Spending on casual dining is expanding rapidly, and thus, we believe there is tremendous opportunity to expand the Pizzeria Vetri concept."
Is Urban Outfitters the one to do that? Its shareholders are about to find out…
