Fashion company Urban Outfitters failed to live up to 2017’s first quarter expectations. Its like-for-like turnover dropped again for Anthropologie, Free People and Urban Outfitters’ parent company.
Major discounts
Its total turnover dropped slightly, down 0.2 % to 761.2 million dollars (685 million euro), but analysts had expected a slight growth to 768.7 million dollars (690 million euro). Its like-for-like turnover even dropped 3.1 %, while expectations stood at a 2.3 % drop.
The company pointed to its major discounts at Urban Outfitters and Anthropologie for the drop, which also impacted its net profit (down 60 % to 11.9 million dollars – 11 million euro). For some time, Urban Outfitters has tried to lure additional customers to its stores through discounts, but that does not seem to work: over the past few quarters, its turnover and profit have consistently dropped.
Urban Outfitters refuses to focus on the negative and also points to its strong online and wholesale performances, both with double-digit growth.
