Urban Outfitters shrinks its net benefit 30% in H1
The American retail giant closed the first half of its fiscal year, ended 31st of July, with a revenue of 1.8 billion dollars.
Retail transformation also hits Urban Outfitters. The American retail giant closed the first half of its fiscal year, ended 31st of July, with a net benefit of 92.9 million dollars, 30% less than the same period last year, when it arrived at 134 million dollars.
The group explains the fall of its profitability to the extension of the sales season, the rise of logistic and delivery expenses and the traffic descent in stores. The company also states that the extension of the sales season was due to the low performance of Anthropologie and Urban Outfitters.
Between February and July, Urban Outfitter’s revenue was 1.8 billion dollars, 1.1% less than the same period last year. By brands, Anthropologie and Free People continue to be leaders of the group. The first one grew 0.1%, up to 149.2 million dollars, while Free People grew 1.1%, up to 392.1 million dollars.
Sale season, logistics costs and lack of traffic in stores, penalize the first half of Urban Outfitters
On the other hand, the chain Urban Outfitters, dropped 4.3% its sales, up to 671.8 million dollars. By distribution channels, both, monobrand and multibrand lowered its business. The first one reduced 0.9%, up to 1.6 billion dollars, and the second one dropped 3%, up to 165.4 million dollars.
During the second quarter, Urban Outfitters opened seven new stores, three of them of Anthropologie, other three of Free People and one of Urban Outfitters. The group, however, closed five, two of Anthropologie, one of Free People and other two of its restauration chain Beverage.
To its fiscal ended 31st of July, the company counted with 246 Urban Outfitters stores, 228 Anthropologie stores and 137 Free People stores. The retail business of the group continued its focus in United States, Canada and Europe. The multibrand channel of the group has presence in 2,200 selling points all around the world.
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