Profit exceeds expectations
Urban Outfitters’ second quarter turnover reached 867.5 million dollars (780 million euro), but analysts had expected even more at 882 million dollars (800 million euro), despite 867.5 million dollars being a company record. Like-for-like turnover grew 4 %, which is also below the anticipated 4.3 % like-for-like turnover growth.
The Urban Outfitters store chain’s turnover grew 4 % on a like-for-like basis, while Anthropologie managed a 2 % increase. Free People experienced the largest growth, as like-for-like turnover grew 14 %, exceeding analysts’ expectations at 13.4 %.
The company’s second quarter net profit reached 66.8 million (60.4 million euro), below last year’s numbers at 67.5 million dollars (61 million euro), but still above what analysts had expected.
Urban Outfitters was in the middle of another media storm last week when it placed a jewelry holder shaped like the Hindu god Lakshmi on its website. After a huge row, it quickly pulled the product. It is not the first time Urban Outfitters clashed with certain ethnic groups, with previous disputes revolving around the Star of David and swastikas.
