Urban Outfitters shares hit low on downgrade

Shares fell $1.52, or 8.7 percent, to $15.98. They earlier set a two-year low of $15.67.

Barclays Capital analyst Jeff Black lowered his rating to "Underweight" from "Equal Weight" and reduced his price target to $17 from $24.

He wrote in a note to investors Monday that Urban Outfitters is an attractive long-term investment, but in the near term there are "clear signs" Anthropologie sales are slowing. Anthropologie stores are aimed at an older and more affluent demographic than Urban Outfitters namesake stores.

At Anthropologie, "heavier markdowns in November are a signal that inventory is too high for the fourth quarter," Black wrote. "We think it's possible that the division (same-store sales will be) negative in the fourth quarter and into the first half of the year."

New-store productivity declined this year and fell significantly in the third quarter while expenses have risen, Black said.