The Urban Outfitters holding returned to profit last quarter, after a decline in 2022. However, the eponymous flagship chain remains in the doldrums, while wholesale sales are also down.
A mixed record
Urban Outfitters, also the parent company of Anthropologie, saw sales rise 5.9 % to 1.11 billion dollars (1 billion euros) in the first quarter. This growth was driven by its own retail sales, with wholesale sales falling by 11 %. Subsidiary brand Free People saw its wholesale sales even fall by 14 %.
On the retail front, subsidiary Urban Outfitters continues to struggle: the fashion chain had to close three physical shops in the previous quarter, while only one shop was added. The total number of shops now stands at 260 in the United States, Canada and Europe. Net sales there also fell sharply to 3.8 million dollars (3.5 million euros), down 13 %.
Nevertheless, the fashion group’s profits are on the rise again. Gross profit increased by 14.8 %, thanks to lower transport costs from the countries of production. Anthropologie and Free People also reduced their price cuts in the last quarter. As a result, net profit for the quarter was 53 million dollars (49 million euros), 20 million dollars higher than a year earlier.
