Urban Outfitters, Inc. (NASDAQ:URBN) reported upbeat earnings for its second quarter, while sales missed expectations.
The Philadelphia-based concern, a leading lifestyle products and services company, announced net income of $60 million for the three months ended July 31, 2019. Earnings per diluted share were $0.61 for the quarter
Total company net sales for the three months ended July 31, 2019, decreased 3.0% over the same period last year to $962 million.
Comparable Retail segment net sales decreased 3%, driven by negative retail store sales, partially offset by growth in the digital channel.
By brand, comparable retail segment net sales increased 6% at Free People and decreased 3% at the Anthropologie Group and 5% at Urban Outfitters. Wholesale segment net sales decreased 8%.
For the quarter, the gross profit rate decreased by 304 basis points versus the prior year’s comparable periods. The decrease in gross profit rate for both periods was driven by higher markdowns, de-leverage in delivery and logistics expenses and store occupancy de-leverage
"I am pleased to report that customer reaction to our early fall apparel assortments have improved significantly from our second quarter results," said CEO Richard A. Hayne. "Third quarter-to-date ‘comp’ sales are positive at all three brands."
During the first half of the calendar year, the Company repurchased and subsequently retired 8.1 million common shares for approximately $217 million under this program.
Shares marched ahead $1.19, or 5.7%, to $22.10
