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.

Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

More from Earnings

Chip Stocks May Have Sold Off Too Much On Recent Spate of Bad News

Chip Stocks May Have Sold Off Too Much On Recent Spate of Bad News

Nordstrom Shares Sizzle on Earnings Release, Raised Guidance

Nordstrom Shares Sizzle on Earnings Release, Raised Guidance

Nvidia Analysts Brush Off Crypto Fears, See 'Buying Opportunity'

Nvidia Analysts Brush Off Crypto Fears, See 'Buying Opportunity'

Throwback Thursday: It's All About Nvidia

Throwback Thursday: It's All About Nvidia

Jim Cramer on JCPenney: No One Knows What They Are

Jim Cramer on JCPenney: No One Knows What They Are