Urban Outfitters’ Stock Plummets After Vetri Restaurants Acquisition Announcement

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Urban Outfitters

Shareholders of Philly lifestyle retailer Urban Outfitters are having a hard time trying to stomach news that the slumping brand is turning to pizza as its recipe for a rebound.

Shares have fallen despite record third-quarter sales of $825 million, all because of plans to acquire five Vetri Family restaurants.

“Spending on casual dining is expanding rapidly, and thus, we believe there is tremendous opportunity to expand the Pizzeria Vetri concept,” CEO Richard Hayne said in a Philadelphia Business Journal report.

The first new location is allegedly headed for Austin, Texas. At Devon Yard, Urban Outfitters experimented with pairing a retail outlet alongside a Vetri dining experience.

“Whether Pizzeria Vetri proves to be a success like Free People or simply an interesting but as of yet immaterial venture like Terrain remains to be seen,” Stifel analyst Richard E. Jaffe wrote in the article.

So far, investors don’t appear to be very optimistic.

Read more about the investor reaction in the Philadelphia Business Journal here, and check out more of the background behind the deal in previous VISTA Today coverage here.

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