A lifestyle specialty retail company, Urban Outfitters (NASDAQ:URBN), announced quarterly results as sales dropped to $872.9 million from $890.6 million year over year. The analysts were expecting sales of $862.0 million. Comparable retail sales, including the comparable direct-to-consumer channel, slipped 4.9%.
During the announcement PHILADELPHIA, PA-based company’s chief executive, Trish Donnelly, laid out the “mistakes” she said the Urban Outfitters brand made during the quarter.
Urban Outfitters (NASDAQ:URBN) reported a comparable sales drop of 7.9%.
She said the company emphasized too much on the separates trend at the expense of dresses, and our sales in separates didn’t make up for our loss in dresses. The product focus “skewed too tomboy and carried lower average unit retails,” and lead times for new merchandise were too long, Donnelly added.
Meanwhile company’s Anthropologie Group’s CEO David McCreight also gave details of few bloopers during the quarter.
“This past spring, our offer was not distinctly Anthropologie, lacking pattern, color, and skewing too casual,” he said. With changes, the group is now “seeing signs of progress.”
In addition Donnelly said the response to all of the brands “bodes well” for the current period. Urban Outfitters’ portfolio also comprise Free People, which improved last quarter sales to $180.2 million from $164.4 million year over year.
Wells Fargo rates Urban Outfitters shares market perform with a $19 price target.
Moreover Urban Outfitters (URBN) stock has plunged almost 41% for the year so far while the SPDR S&P Retail ETF XRT, has dropped 12.4% for the period and the S&P 500 index SPX, rose 10.1% for the period.