Urban Outfitters boosted by strong online sales
Urban Outfitters, the owner of the Anthropologie, Free People and Urban Outfitters retail brands, has reported that total sales dropped by 16.5% to $803 million in its second quarter. However, the US company said all of its brands were profitable in the period.
Comparable retail sales fell by 13% in the three months to 31 July due to stores being closed for part of the quarter during lockdowns and lower sales once shops reopened. However, this was partially offset by strong double-digit growth in online sales.
Looking at the company’s individual retail brands, retail sales decreased by 8% at Urban Outfitters and by 25% at Anthropologie. In contrast, sales climbed by 11% at Free People.
The company said merchandise markdowns were lower in the quarter while its initial merchandise mark-up rate was flat compared to the same period in the previous year.
Meanwhile, net income came in at $34 million for the three months period. For the six months ended 31 July, the company posted a net loss of $104 million.
Richard Hayne, chief executive, of Urban Outfitters, said: “I’m pleased to announce URBN produced solid revenues and profits for the second quarter driven by strength in the digital channel. Notably, all brands were profitable and enter the fall selling season with lean inventories and positive momentum.”
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