Steep promotions and higher expenses contributed to a 20.9 percent decline in Urban Outfitters Inc.’s second-quarter net income.
Glen Senk, chief executive officer, told analysts on a conference call that sales at the Anthropologie unit had decelerated over the past 10 days as consumers reevaluated the political and economic scene.
But he also noted that the women’s assortments at both Anthropologie and Urban Outfitters had been weak, and said the company was working to improve those collections and streamline its merchandising and e-commerce efforts.
For the period ended July 31, the Philadelphia-based retailer posted a profit of $56.7 million, or 35 cents a diluted share. This compared with earnings of $71.7 million, or 42 cents a share, in the year-ago quarter. Despite the decline, profits came in 3 cents ahead of Wall Street projections.
A 16.6 percent jump in e-commerce sales to $112.6 million boosted total sales by 10.3 percent to $609.2 million, from $552.2 million a year earlier. Sales came in ahead of the $604.5 million analysts expected.
Quarterly gross margin as a percentage of sales slid to 37.9 percent from year-ago margin of 42.5 percent, as selling, general and administrative expenses for the quarter rose 11.9 percent to $143.1 million.
Comparable-stores sales fell 2 percent, but when including direct sales, they improved 1 percent for the quarter. Comps at Free People and Urban Outfitters increased 1 percent and 18 percent, respectively, while comps at Anthropologie were flat.
Although the company vowed to tread with caution in the quarters to come, Urban plans to open 55 to 57 stores this year, focusing on the Free People and Urban Outfitters’ European division.
“What he has done at Vuitton is really exceptional,” said @gameofthrones’ actress Gwendoline Christie on @mrkimjones’ final show for @louisvuitton. “He has rebooted luxury in terms of making it commercial, viable and contemporary. And most importantly artistic. He has never compromised his artistic vision for the sake of commodity.” (📷: @zefashioninsider)
After seeing a demand for men’s wear from its customers, British contemporary women’s wear label @ariesarise has added a men’s wear component and will launch a unisex collection with @mrporterlive. The 20-piece collection includes jackets, denim, logo T-shirts and more with deconstructed ‘90s vibes. Set to launch on January 18, you can shop the pieces on Aries’ website and on mrporter.com. #wwdfashion
“And so spending so much time with a character who thinks like that, inevitability you try and analyze yourself and go back and think about your own demons and dark chapters that you had in your life,” says @thedanielbruhl of his role in TNT’s “The Alienist.” The show, set in the Gilded Age of New York, also stars Dakota Fanning and Luke Evans. Head to WWD.com to read about how 39-year-old Brühl prepared for the role and why he thinks the show is so relevant to today #wwdeye ( 📷: @Eriktanner)
Now that Celine Dion’s collection has topped $10 million in sales, the pop superstar, fashion icon and newly-minted industry player is eyeing growth in Asia. Read the full report by @tiffanyap, link in bio. #wwdnews #celinedion
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
Among the familiar faces at @off____white’s show was a surprise figure: Japanese artist @takashipom, pictured here on Wednesday morning. Other show-goers included @jerrylorenzo, who spoke about his upcoming project: a @nike collaboration for back to school, with designs inspired by his childhood on the West Coast. Sitting in the front row were Future, Don Crawley, @miguel and more. See the rest of the photos on WWD.com #wwdeye (📷: Stephane Feugere)
According to @laurentsai, former “Terrace House: Aloha State” cast member, she didn’t know she was auditioning for the Japanese version of “Real World.” “I was telling a couple of my friends and someone’s like, ‘That sounds a lot like Terrace House.’ I was like, ’No it can’t be.’” Turns out, it was. But Tsai isn’t just a reality star — she’s an illustrator who has worked with Starbucks Japan and most recently, she’s dipping her toes into the fashion world. Head to WWD.com to read about her time on the show, modeling and her art. #wwdeye (📷: @danieldorsa)
More changes are coming to New York Fashion Week: Beginning with the spring 2019 collection, @alexanderwangny will move his New York show to June from September, adopting a biannual schedule with collections shown in June and December. Additionally, the @cfda is planning for an official summer/winter fashion season taking place as soon as June and December 2018. Read more about the upcoming changes on WWD.com. #wwdnews #wwdfashion (📷: @slovekinpics)