Urban Outfitters comps disappoint but online, wholesale brighter
Urban Outfitters endured a mostly downbeat Q1 posting a weaker-than-expected performance Tuesday. Its shares closed down 2.3%, but rallied 1.66% after hours as online and wholesale were at least two bright spots for the US fashion group.
Net income fell more that 60% to $12m/$0.10 a share for the three months ended April 30, Net sales were flat at $761m, below expectations of $768m, as same-store sales fell 3.1%, below the 2.6% dip analysts expected.
By brand, comps fell 3.1% at Urban Outfitters and by 4.4% at Anthropologie Group but rose 1.5% at Free People.
The group said comparable retail segment sales were driven by strong, double-digit growth in the direct-to-consumer channel while wholesale segment net sales increased 14%.
“During the first quarter we continued to see strong double-digit growth from our direct-to-consumer channel and our wholesale business,” noted CEO Richard A Hayne. “We believe we have significant opportunity to continue to grow both of these channels at all of our brands,” he added.