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Urban Outfitters (URBN) Provides Sales Update for First Quarter

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The Retail - Apparel And Shoes industry is striving to capitalize on any revival in demand with focus areas being value addition, product innovation and diversification, digitization, supply chain and disciplined capital spending. Markedly, Urban Outfitters, Inc. (URBN - Free Report) recently highlighted that total Retail segment comparable net sales have increased so far in the first quarter of fiscal 2022. Clearly, the company is likely to have benefited from rebound in consumer spending and pick up in apparel sales.

Management stated that total Retail segment comparable net sales have risen in the high-single digits thus far in the first quarter of fiscal 2022 compared with fiscal 2020. On its last earnings call, the company did inform that the first quarter will witness steady sales improvement as the quarter progresses.

Meanwhile, the company has recorded double-digit ‘comp’ results at both the Free People and Urban Outfitters brands in North America. The Philadelphia, PA-based company also informed that sales at Anthropologie brand have improved meaningfully but were slightly negative.

Well, Urban Outfitters did encounter coronavirus-induced challenges. The company specified that most of its stores in Europe have remained closed during the quarter under review due to the pandemic-induced restrictions. However, stores in the U.K. were scheduled to reopen on Apr 12, 2021. Nonetheless, the company said, “triple-digital on-line sales increases have largely offset the loss of store sales.”

Urban Outfitters also announced that Tricia D. Smith is now the new global chief executive officer of the Anthropologie brand, and replaces Hillary Super, who stepped down on Apr 9.

Wrapping Up

Being a multi-brand and multi-channel retailer, Urban Outfitters offers flexible merchandising strategy. The company also has a significant domestic and international presence with rapidly expanding e-commerce activities. It remains committed to improving comparable sales performance, sustaining investments in direct-to-consumer business and enhancing productivity in existing channels. Also, the company’s strategic growth initiative, FP Movement, bodes well. Notably, Urban Outfitters offers products through 644 stores in the United States, Canada and Europe, global websites, and catalogs.

Markedly, the Zacks Consensus Estimate for its current quarter sales and earnings indicates an improvement of 47.4% and 105.3%, respectively, from the year-ago period. Moreover, shares of this Zacks Rank #3 (Hold) company have appreciated 37% over the past three-month time. In the said period, the industry rallied 15.3%.

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