Urban Outfitters posts record Q2 sales as shares prices rally

In a bid to protect the business amid the Covid-19 pandemic, Urban Outfitters has told suppliers it can no longer accept delivery of goods on orders, and will cancel all undelivered orders.
A letter was sent to suppliers informing them of the changes,

Urban Outfitters has seen it shares rally after boasting record quarterly sales and smashing analysts’ expectations.

For the three months to July 31 the fashion retailer saw sales jump 13.7 per cent to $992 million (£769.5 million) compared to a year prior, breaking its previous quarterly record and comfortably beating analyst expectations of $980 million (£760 million).

Net income jumped a massive 86 per cent for the quarter was $93 million (£72 million) bringing its half year income to $134 million (£103.9 million) equating to earnings of 84 cents a share, well above forecasts of 77 cents.

Its namesake brand enjoyed a sales boost of 15 per cent to $379 million (£294 million), while its other brands Free People and Anthropologie saw sales rise 17 per cent to $206 million (£159 million) and 11 per cent to $401 million (£311 million) respectively.

The positive figures, which the brand said was aided by solid online and mobile growth, saw its shares jump as much as five per cent.

“(Urban Outfitters) has done an excellent job improving its fashion offering across all three of its brands – Anthropologie, Free People and Urban Outfitters – while at the same time improving its inventory levels, which has in turn led to more full price selling,” founder of research firm Retail Metrics said Ken Perkins said.

The news comes after the retailer announced its 30th UK store would open in Cheltenham’s Brewery Quarter.

It marks a significant improvement from results published this time last year, which marked its worst financial figures for seven years.

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