(Reuters) – Urban Outfitters’ quarterly sales fell short of market estimates as sales under the Anthropologie brand rose at the slowest pace in 11 quarters, sending the company’s shares down 17% in extended trading.
The company called Anthropologie’s performance a “disappointment” and said it expects more discounts in the business in the second quarter as it tries to attract young women.
Net sales in the Anthropologie brands business, which caters to women aged 28-45 years, rose 3.8% to $311.4 million.
The company has been overhauling stores and merchandise at its namesake brand to fight a slowdown in sales.
Overall same-store sales rose 4%, missing the 5.3% growth analysts had expected, according to research firm Consensus Metrix.
Revenue rose nearly 8% to $739.0 million.
Net income fell 12.5% to $32.8 million, or 25 cents per share, as cost of goods sold rose 10%.
Analysts on average had expected a profit of 30 cents per share and revenue of $758.2 million, according to Thomson Reuters I/B/E/S.
For more about Urban Outfitters, watch this Fortune video: