Urban Outfitters in mixed Q2; Free People continues to shine
Urban Outfitters’ second-quarter earnings topped analysts’ estimates but its revenue fell short amid comp declines at its namesake and Anthropologie divisions.
The retailer reported earnings of $60 million, or $0.61 cents a share, in the quarter ended July 31, compared with $93 million, or 84 cents a share, in the year-ago period. Analysts had expected earnings of $0.59 cents a share
Total net sales decreased 3% to $962 million, short of Street expectations of $982 million. Same-store sales also dropped 3%. By brand, comparable sales increased 6% at Free People and decreased 3% at the Anthropologie Group and 5% at Urban Outfitters. Wholesale segment net sales decreased 8%.
“I am pleased to report that customer reaction to our early fall apparel assortments have improved significantly from our second-quarter results,” said Richard A. Hayne, CEO. “Third quarter-to-date ‘comp’ sales are positive at all three brands.”
As of July 3, Urban Outfitters operated 246 Urban Outfitters stores and websites; 228 Anthropologie Group stores and websites; 137 Free People stores, catalogs and websites, 11 food and beverage restaurants, four Urban Outfitters franchisee-owned stores, one Anthropologie Group franchisee-owned store and one Free People franchisee-owned store.