Urban Outfitters Inc., a lifestyle retailer with an extensive portfolio of global brands, has recently announced earnings from their second quarter. The company had a total net income of $34 million for the past three months.
Across each of the brands in their portfolio, including Anthropologie, BHLDN, Free People, Terrain, Urban Outfitters, Nuuly and Menus & Venues brands, net sales varied. Free People came in as the only retailer with a significant increase for the quarter – bringing in 11%. Shares for the company also jumped to 12% for the quarter.
Due to store closures for part of the quarter, total net sales for all brands had decreased 13%. However, Urban Outfitters notes a positive outlook for the future, with stronger-than-expected numbers allowing for a quick rebound.
“Notably, all brands were profitable and enter the fall selling season with lean inventories and positive momentum,” said Richard A. Hayne, Chief Executive Officer.
Urban Outfitters’ gross profit rate decreased from 18% to 32% from the prior year. The retailer noted this decrease is due to a clear jump in delivery and logistics expenses from their digital sales. E-commerce frictions such as these have continued to surface, and now they’re more evident than ever before. Online sales drive plenty of uneccessary expenses such as delivery, packaging, returns, and more. With the evident decrease in gross profit, Urban Outfitters has clearly noticed these issues as well.
Source: URBN Q2 Profits – Press Release 8/25/20
Photo Credit: URBN Store Environment
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About Urban Outfitters, Inc.
Urban Outfitters, Inc., offers lifestyle-oriented general merchandise and consumer products and services through a portfolio of global consumer brands comprised of 248 Urban Outfitters stores in the United States, Canada and Europe and websites; 233 Anthropologie Group stores in the United States, Canada and Europe, catalogs and websites; 143 Free People stores in the United States, Canada and Europe, catalogs and websites, 11 Menus & Venues restaurants, 2 Urban Outfitters franchisee-owned stores and 1 Anthropologie Group franchisee-owned store, as of July 31, 2020. Free People, Anthropologie Group and Urban Outfitters wholesale sell their products through approximately 2,300 department and specialty stores worldwide, digital businesses and the Company’s Retail segment.
