Urban Outfitters announces 7% drop in Q4 sales
Philadelphia-based lifestyle group Urban Outfitters, Inc. (URBN) reported net sales of $1.09 billion in the fourth quarter on Tuesday, down 6.9% year over year from $1.17 billion. According to the company, this decline was largely due to reduced store traffic and occupancy restrictions related to the Covid-19 pandemic.
In the fourth quarter ended January 31, 2021, URBN saw its comparable retail segment net sales decrease 7%, as strong double-digit growth in the company’s digital channel partially offset in-store declines.
Total net sales at the group’s namesake Urban Outfitters banner came to $428.1 million, with comparable retail sales at the brand falling 6%. At the Anthropologie Group, comparable retail sales decreased 11%, while net sales totaled $431.4 million.
Free People, however, posted net sales of $219.3 million off the back of a 6% rise in comparable retail sales.
“I am pleased to report that all three brands registered nice improvement in comp sales trends in January from that delivered during the holiday period,” commented URBN CEO Richard A. Hayne in a release. “We are particularly pleased with how well the brands transitioned into February. Customer reaction to our spring assortments has been quite strong and comps for the first week of the new fiscal year were positive at each brand.”
URBN’s total wholesale segment net sales decreased 7% in the fourth quarter.
For the full fiscal year, the company’s net sales dropped 13.4% to $3.45 billion, down from $3.98 billion in the previous year.
Over the course of the last twelve months, URBN has opened a total of 20 new retail locations run under its three main banners, and permanently shuttered 10. Six franchisee-owned stores were also closed during the year. The company currently operates more than 630 retail locations in the U.S., Canada and Europe.
URBN intends to publish its full quarterly and annual results, including sales and earnings, on March 2, 2021.
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