Urban Outfitters revenue hit by slower store sales
URBN, the owner of the Urban Outfitters, Anthropologie and Free People retail brands, has reported that its second quarter total sales fell by 3% to $962 million.
In the three months to 31 July, comparable sales also dropped by 3% as the company struggled against slower sales in its stores.
Looking at the different brands, comparable retail sales increased by 6% at Free People. However sales Anthropologie and Urban Outfitters declined by 3% and 5% respectively. Meanwhile, wholesale sales decreased by 8% in the period.
Net income reached $60 million in the three months compared to $93 million in the same period last year.
Urban Outfittters said profitability was impacted by higher markdowns which were largely driven by an underperforming women’s clothing category at Anthropologie and Urban Outfitters.
Commenting on more recent trading, Urban Outfitters chief executive Richard Hayne said:“I am pleased to report that customer reaction to our early fall apparel assortments have improved significantly from our second quarter results. Third quarter-to-date ‘comp’ sales are positive at all three brands.”
Photo by Georgia Hawkins