Urban Outfitters, Inc. posted net income of 34 million dollars and earnings per diluted share of 35 cents for the three months ended July 31, 2020, while for the six months period, net loss was 104 million dollars and loss per diluted share was 1.06 dollars. The company said in a statement that total net sales for the quarter decreased 16.5 percent to 803 million dollars, while comparable retail segment net sales decreased 13 percent, driven by negative retail store sales due to stores being closed for part of the quarter and lower store productivity once opened, partially offset by strong double-digit growth in the digital channel.
“I’m pleased to announce URBN produced solid revenues and profits for the second quarter driven by strength in the digital channel,” said Richard A. Hayne, the company’s Chief Executive Officer, adding, “Notably, all brands were profitable and enter the fall selling season with lean inventories and positive momentum.”
Review of Urban Outfitters’ Q2 results
By brand, comparable retail segment net sales increased 11 percent at Free People and decreased 8 percent at Urban Outfitters and 25 percent at the Anthropologie Group. Total retail segment net sales decreased 14 percent, while wholesale segment net sales decreased 51 percent.
For the three months, the company added, gross profit rate decreased to 29.6 percent from 32.8 percent in the prior year’s comparable period. Gross profit dollars decreased 24.6percent to 238 million dollars from 315.9 million dollars. Net income for the quarter was 34 million dollars and earnings per diluted share was 35 cents.
During the six months ended July 31, 2020, the company opened a total of five new retail locations including three Urban Outfitters stores and two Anthropologie Group stores; and closed four retail locations including three Urban Outfitters stores and one Free People store.