Specialty retailer Urban Outfitters Inc. (URBN) Thursday reported a decline in its second-quarter profit, hurt by higher selling and administrative costs. Net sales were up marginally, reflecting weakness in comparable store sales across its business segments.
The company's second-quarter net income was $49.02 million or $0.29 per share, compared with $56.99 million or $0.33 per share in the same quarter last year.
On average, 26 analysts polled by Thomson Reuters expected the company to report earnings of $0.26 per share for the quarter. Analysts' estimates typically exclude special items.
Urban Outfitters' net sales rose 1% to $458.63 million from $454.30 million in the prior-year quarter. Twenty four analysts had a consensus revenue estimate of $458.74 million for the quarter.
The Philadelphia, Pennsylvania-based company's net income for the preceding first quarter was $30.8 million, or $0.18 per share, on net sales of $384.8 million.
Urban Outfitters that operates under Anthropologie, Free People, Terrain and Urban Outfitters brands, said on August 6 that second-quarter comparable store net sales decreased 6%. At Anthropologie, Free People and Urban Outfitters, the comparable store sales declines were of 4%, 16%, and 8%, respectively. Comparable retail segment net sales, which include the company's direct-to-consumer channels, decreased 3%.
The company also reported a 17% rise in its direct-to-consumer net sales, while wholesale segment net sales declined 7%. Total comparable store inventories decreased 7%.
Urban Outfitters stores' net sales dropped to $177.12 million from $189.81 million a year ago. Anthropologie stores sales were $173.15 million, up from $165.62 million in the same quarter last year. Free People stores generated sales of $9.22 million, higher than $7.76 million reported in the previous year. Terrain sales declined to $2.31 million from $2.61 million a year earlier.
Net store sales reached $361.79 million, lower than $365.79 million in the same quarter last year. Direct-to-consumer sales rose to $70.93 million from $60.50 million a year ago. Retail segment net sales totaled $432.72 million, up from $426.29 million in the previous year. Wholesale Segment net sales decreased to $25.91 million from $28 million in the second quarter of fiscal 2008.
The company's selling, general and administrative expenses rose to $108.65 million from $103.59 million in the prior-year quarter. These increases were primarily due to the deleveraging of fixed store costs related to the decline in comparable store sales and a one-time site development expense related to a prospective Terrain location.
For the first half of fiscal 2009, Urban Outfitters reported a net income of $79.83 million, or $0.47 per share, compared with $99.55 million, or $0.58 per share, in the prior-year quarter. Net sales reached $843.42 million, down from $848.59 million in the same period last year.
Among others in the sector, Abercrombie & Fitch Co. (ANF) is slated to announce its second-quarter results on August 14. The company's fourth-quarter net sales were down 23% to $648.5 million. Analysts are of the view that the company will report a loss of $0.07 per share in the quarter on sales of $646.96 million.
Another peer, Bebe Stores, Inc. (BEBE) is set to report its fourth-quarter results on August 27.
For the fourth quarter, Bebe Stores currently anticipates earnings per share to be at or below the low end of the range previously provided as a result of lower comparable store sales. Earlier, the company anticipated that fourth-quarter earnings per share will be in the range of $0.02 - $0.10 per share depending on actual sales and markdowns, and comparable store sales will be in the range of negative mid teens to low twenties. The company said its forecast is before taking into account any one time charges, asset write downs or write offs.
Bebe Stores has reported fourth-quarter retail sales of $125.3 million, down from $167.2 million in the same period a year ago. Analysts forecast a profit of $0.02 per share for the quarter on sales of $131.54 million.
Gap Inc. (GPS) said on August 6 that it forecasts earnings for the second quarter in a range of $0.30-$0.32 per share on a GAAP basis. As per Wall Street analysts, the company would earn $0.32 per share in the second quarter. The company's second-quarter net sales declined 7% to $3.24 billion from $3.50 billion in the year-ago quarter. Analysts were looking for sales of $3.24 billion.
URBN is trading at $29.50, up $1.28, on a volume of 2.18 million shares.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.