About a week after CEO Richard Hayne criticized the state of the retail landscape, his company Urban Outfitters has been dropped from the S&P 500.
The S&P 500 raised its market cap guidelines last week. Effective March 20th, stocks included in the S&P 500 must now have a total value of at least $6.1 billion, a 15% increase from the previous $5.3 billion requirement. This means that Urban Outfitters will now be relegated to the stock index’s MidCap 400, which includes companies with a market cap between $1.6 billion to $6.8 billion. The Navy Yard-based retailer has a market cap of $2.77 billion.
Last week the company reported lower-than-estimated quarterly earnings and we’ve reported that the company has some questionable practices in place like its new flex-time policy and apparent lack of a human resources department. As Fortune points out, the company has experienced an up-and-down stock performance over the last couple of years. The company hit an all-time high of $47.01 two years ago, but shares of the company have fallen more than 48% to $23.86 at close of business on Tuesday. That share price is within a couple of dollars of its lowest level since 2011, Fortune reports.
The announcement caused Urban Outfitters’ stock to fall 3.8% to the bottom of the S&P 500, according to Barron’s.
To get sales up, the company recently said it will cautiously open 15 brick-and-mortar locations across North America, and it’ll continue to bolster its e-commerce platform.
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