Philadelphia-based fashion retailer Urban Outfitters, Inc. reported its preliminary first-quarter financial results on Tuesday, announcing a 31.9% decrease in sales due to the impact of COVID-19-related store closures.
The company, which owns the Anthropologie, BHLDN, Free People, Terrain, Urban Outfitters, and Nuuly brands, achieved quarterly sales of $588 million, down from $864 million in the prior-year period.
Comparable retail segment sales fell 28% as a result of mandated store closures, which were partially offset by low double-digit growth in the company’s digital channel. Comparable retail sales decreased 19% at Free People, 24% at Urban Outfitters and 33% at the Anthropologie Group.
Having closed all brand locations across the U.S. in mid-March, Urban Outfitters has now slowly begun reopening stores in selected locations. The company currently has operational stores in 26 states.
Total retail segment sales declined 28%, while the company’s wholesale segment posted a 74% decrease.
The company also reported a preliminary net loss of $138 million, or a loss of $1.41 per diluted share, for the quarter, down from net income of $33 million, or $0.31 per diluted share, in the same period in the previous year.
“I am incredibly proud of our teams for their hard work, dedication and resilience over the last two months,” said Urban Outfitters CEO Richard A. Hayne in a release. “The actions we’ve taken during the quarter to strengthen our balance sheet and help preserve liquidity provides us with financial flexibility during this difficult period.”
Since the start of the coronavirus pandemic, the company has introduced a range of measures in order to safeguard its operations during and after the crisis. As well as temporarily furloughing a number of store, wholesale and home office employees, the group reduced leadership compensation, suspended hiring, eliminated bonuses and delayed merit raises.
Urban Outfitters has also borrowed $220 million, reduced its capital budget by over $100 million, and temporarily suspended rent payments.