Shares of Urban Outfitters (URBN) dropped in morning trading after the retailer said same-store sales for the current quarter have declined by a high single digit percentage. The report comes as Urban and its peers face external consumer market headwinds.

COMP SALES UPDATE: In a regulatory filing, Urban Outfitters, the parent company of the Urban Outfitters, Anthropologie and Free People brands, said its current-quarter comparable sales are “thus far” down in the high single digits. The disclosure follows disappointing Q1 results from Urban Outfitters in May, at which time the company reported EPS of 13c on revenue of $761M, below the 16c and $769.81M analysts were expecting. Comparable Retail segment net sales, which include the comparable direct-to-consumer channel, decreased 3.1% for the company, with comparable Retail segment net sales up 1.5% at Free People and down 3.1% at Urban Outfitters and 4.4% at Anthropologie. The decrease in Retail segment comparable net sales was driven by negative comparable store net sales, which were partially offset by continued growth in the direct-to-consumer channel, the company said. At the time, CEO Richard Hayne said total Retail segment comps sales registered a “disappointing” 3% decline, well below plan, which drove increased promotional activity and “more margin pressure than we had anticipated.” As in previous quarters, the company said it saw extreme variability in results by channel. Hayne added that the sales shortfall in Q1 was “wholly attributable to weaker-than-expected store channel performance in North America where all three of its brands encountered sluggish customer traffic and sales. This issue is impacting virtually all U.S. brick-and-mortar retailers. There are simply too many stores and too many malls in North America. We expect to see more closures and brands disappear until a healthier balance is reached.”

MALL-DEPENDENT RETAILERS: Urban Outfitters, like many other mall-dependent retailers, has been impacted by the slowdown in general mall traffic of late. Anchor stores in malls like Macy’s (M), J.C. Penney (JCP) and Sears Holdings (SHLD) have struggled over the last few years as consumer trends like e-commerce, notably “the Amazon (AMZN) Effect,” have curtailed their brick and mortar sales. Nearly every major department store, including the aforementioned “anchor stores,” have collectively closed many stores over the last year. Another peer, bebe (BEBE), also recently reported reduced store traffic due to its mall dependency, citing “the Amazon Effect,” and said it would close all of its stores by the end of May.