Pedestrians pass in front of an Urban Outfitters store in New York.

Urban Outfitters shares fell Wednesday after the company posted earnings that missed by a penny and analysts cut their price targets on the stock.

At least eight brokerages cut their price targets on Urban's stock, according to Reuters.

Shares briefly dropped more than 5 percent to lows not seen since February 2016. The stock later recovered its losses, but still ended the day more than 2 percent lower.

The clothing retailer reported fourth-quarter earnings per share of 55 cents on Tuesday, missing estimates by a penny. Revenue was in line at $1.03 billion versus the $1.04 billion expected by a Thomson Reuters consensus.

Gross profit margins fell to 33 percent for the quarter, down from 34.5 percent in the year-ago period.

Same-store sales rose 1.2 percent at Urban Outfitters stores and 1.2 percent at Free People locations, but fell 2.9 percent at the retailer's Anthropologie stores.

Urban Outfitters CEO Richard Hayne said on the company's earning call that the retail space is oversaturated and clothing stores are taking too much physical square footage compared to places like Europe or Japan.

"This created a bubble, and like housing, that bubble has now burst," Hayne said. "We are seeing the results: doors shuttering and rents retreating. This trend will continue for the foreseeable future and may even accelerate."

Shares of Urban Outfitters are down 30 percent over the last 3 months.