Urban Outfitters (URBN) was, for a time, able to remain relatively untouched by the recession -- but it has finally succumbed.
The contemporary apparel chain recorded a 28% drop in second-quarter earnings, as profit fell to $30.8 million, or 18 cents a share, from $42.6 million, or 25 cents, last year. Analysts expected earnings of 17 cents a share.
Sales slipped 2% to $384.8 million from $394.3 million, while totally same-store sales declined 9.6%.
By brand, comparable sales dropped 6% at Urban Outfitters and 13% at Anthropologie and tanked 23% at Free People.Despite rather soft sales, CEO Glenn Senk said in a statement that the company is "well-positioned to show improvement over the next several quarters." Analysts seem to agree. Roxanne Meyer, analyst at UBS, said in a note to clients that while the retail environment remains tough and second-quarter comps were weaker for the core Urban Outfitters, channel checks show momentum is building. "We believe current product is stronger now than in the first quarter," she wrote.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV