Urban Outfitters Performance Recovery Is Just A Flash In The Pan?

The latest data released by fashion retailer UrbanOutfittersInc. (NASDAQ:URBN) show that the revival of UrbanOutfitters demand for the same brand in the first 2017 fiscal year may be short-lived, resulting in a flash in the pan.

On the 9 day after trading, the market crashed 7.8%.

In the first quarter earnings report submitted to SEC on the 9 day, UrbanOutfittersInc. pointed out that the same store sales in the two quarter since May have been recorded in the median declines, far worse than RetailMetrics's comprehensive forecast of 1.1% growth of the data.

Data showed that the same store sales in the same period last year and the first quarter increased by 4% and 1% respectively.

According to the data, in the first quarter of April 30th,

A faster response to fashion, a shorter design cycle, and a store - to - store time to attract young people again, with a 2% growth in the same store sales, the Anthropologie brand was flat in the same period last year, and the strong FreePeople rally stopped at an abrupt quarter and a 2% year-on-year decline in the same store sales.

The group's same store sales still have a 1% increase, which is 0.5% better than the market forecast.

Net sales increased by 3.2% to $758 million 700 thousand a year, better than the market expectations of $760 million 100 thousand.

UrbanOutfittersInc. chairman and Chief Executive Officer

Disappointed with the performance of FreePeople in the first quarter, he thought that the safety card was too much, resulting in an increase in inventory and forced to offer additional discounts.

In the first quarter, UrbanOutfittersInc. realized net profit of 29 million 600 thousand US dollars, a decrease of 9.8% compared with 32 million 800 thousand US dollars in the same period last year, and the diluted earnings per share remained at 0.25 US dollars, which was in line with market expectations.

UrbanOutfittersInc. also owns the wedding dress brand BHLDN and home decoration brand Terrain. At the end of 2015, the pizza restaurant VetriFamily bought the catering industry.

UrbanOutfittersInc. (NASDAQ:URBN) 9 reported 27.93%, down 1.34%, and the stock has risen 20.96% since 2016.

However, the impact of the higher discount rate of FreePeople on gross margin in the first quarter was offset by a reduction in UrbanOutfitters discount sales. Gross margin increased by 100 basis points, up from 33.3% in the same period last year to 34.3%.

As of April 30th, the total value of inventories fell by 9.6% to 359 million 900 thousand US dollars per year, RichardHayne revealed that UrbanOutfitters brand had double digit sales growth directly to consumer channels.