Revenues fall across all three major brands with stores closed during the pandemic.
The teen retailer, parent company to the Urban Outfitters, Anthropologie, Free People, Terrain and Bhldn brands, in addition to rental subscription service Nuuly and a food and beverage business, posted a quarterly net loss of $138 million Tuesday afternoon, causing shares to slide by more than 5 percent in after-hours trading. The company said the results were preliminary as they include provisional impairment expense and the corresponding tax effects.
Urban Outfitters was one of the first retailers to announce store closures — in the second week of March — to help contain the spread of the coronavirus. The company later furloughed some associates on April 1 for a period of 60 days to help curb costs. Hayne added on the call that in-store traffic continues “creeping up” each week with categories like home and lounge over performing. In addition, Urban Outfitter’s new customer count is up over 60 percent.
Meanwhile, with last quarter’s store closures, some occupancy expenses were deleveraged. But rent remains unadjusted until agreements can be reached with landlords, according to the company. The firm also had a $43.3 million year-over-year increase in inventory obsolescence reserves because of excess inventory and an increased promotional environment. Delivery expenses also increased with added penetration in the digital channel.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Stocks making the biggest moves after hours: Urban Outfitters, Moderna, Johnson & Johnson and moreCheck out the companies making headlines after the bell.
Read more »
Urban Outfitters predicts 60% fall in same-store sales on slow recoveryApparel retailer Urban Outfitters Inc on Tuesday projected a 60% decline in same-store sales in the second quarter due to tepid demand recovery from the COVID-19 pandemic disruptions, sending its shares down 6% in extended trading.
Read more »
UMe Names Katina Bynum EVP of East Coast Labels, UrbanKatina Bynum has been appointed executive vp of East Coast Labels, Urban for Universal Music Enterprises (UMe), the global catalog and special markets division at Universal Music Group.
Read more »
Nicole Kidman 'Broke Her Ankle' While Running Over a Pothole, Says Husband Keith Urban'She’s been handling it way better than I would’ve,' Keith Urban said of his wife Nicole Kidman
Read more »
Keith Urban Explained How Nicole Kidman Broke Her AnkleKeith Urban set the record straight on Nicole Kidman's ankle injury.
Read more »
Keith Urban Explains How Wife Nicole Kidman Broke Her AnkleNicole Kidman broke her ankle while out for a jog. 🏃♀️ (📸: HBO)
Read more »