Wednesday, 26 August 2020

Urban Outfitters swings to surprise profit on strong digital sales



Shares in Philadelphia-based fashion retailer Urban Outfitters, Inc. (URBN) shot up more than 12% in the extended session on Tuesday, as the company reported surprise second-quarter earnings of $34.4 million, or $0.35 per diluted share, thanks to solid sales growth in its digital channel.


The group, which owns the Urban Outfitters, Anthropologie Group, and Free People brands, among others, reported net income of $60.3 million, or $0.61 per diluted share, in the prior-year period.

For the second quarter ended July 31, 2020, the company’s net sales totaled $803.3 million, falling 16.5% from $962.3 million in the same period in the previous year. A 13% decrease in comparable retail segment net sales resulted from temporary store closures during part of the quarter, as well as lower productivity once stores reopened, partially offset by double-digit growth in the retailer’s digital channel.


The group, which owns the Urban Outfitters, Anthropologie Group, and Free People brands, among others, reported net income of $60.3 million, or $0.61 per diluted share, in the prior-year period.

For the second quarter ended July 31, 2020, the company’s net sales totaled $803.3 million, falling 16.5% from $962.3 million in the same period in the previous year. A 13% decrease in comparable retail segment net sales resulted from temporary store closures during part of the quarter, as well as lower productivity once stores reopened, partially offset by double-digit growth in the retailer’s digital channel.

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