Urban Outfitters 1st Quarter sales are weak


Well there’s good news and there’s bad news. The good news is I really think we are due for a promo code soon from Anthropologie. The bad news is that the reason why is that sales continue to decline.

From Business Week:
Shares of Urban Outfitters Inc. fell on Wednesday, after the apparel retailer said in a regulatory filing that sales have been weak during the fiscal year so far.

“Thus far during fiscal 2010 total company sales are less than the same period in the prior year and our (same-store) sales trend has declined from our most recently completed quarter,” the company wrote in its annual report filed with the Securities and Exchange Commission on Monday.

Urban Outfitters had escaped from much of the consumer spending slowdown for much of 2008, helped by consumer demand for the original, eclectic fashion it sells at namesake stores, pricier Anthropologie stores and its wholesale and retail Free People brand. However, sales have weakened over the past two quarters.

“We believe much of the pressure on first-quarter sales is coming from the Anthropologie division, which we believe is comping significantly negative as the economic uncertainty, market volatility and higher average retail prices is likely impacting this customer more than the Urban Outfitters customer,” he [Richard Jaffe] wrote.

This is certainly true for me. My spending is down. I have noticed my personal shopping clients are also taking it a bit slower. I am looking forward to re-investing some of my tax refund back into the economy via Anthropologie though. How about you?

8 Comments

  1. April 16, 2009 / 12:16 am

    I should slow down! 🙂 I will admit that I do not buy anything there unless it is on sale. Living in Chicago, I can wait and not miss the season. I just bought tanks and short sleeve tops on sale that were new in Jan/ Feb. and it is still too cold to wear them.

  2. April 16, 2009 / 12:17 am

    This comment has been removed by the author.

  3. April 16, 2009 / 6:30 am

    I am much more fickle when it comes to sales- I'm having a difficult time shelling out full price for things that I know will eventually go on sale (due to the poor economy). I can see how this is a vicious cycle for retailers.Also, the top I want:Pointelle Ruffle Tankis gone in my size. Cry. Get it back in stock, Anthro, so I can buy it! I'd even pay full price for it! 😀

  4. April 16, 2009 / 12:44 pm

    I need to buy something other than shorts and tees for the summer. It would be nice to find them on sale. THe problem is I don't shop often enough to find what I want on sale. I go when I can and get what I like because if I wait for it to go on sale, I'll miss out. BTW Blondmoma, I live west of Chicago and I am wearing short sleeves today. I am tired of all my winter clothes. And flip flops, I am dying to wear flip flops!

  5. April 16, 2009 / 12:53 pm

    Georgine- so funny that you are wearing flip flops! I put some on after work to go to my kid's practices. So many people commented- Did you just get a pedi? You're so brave! Aren't you cold?I am dying for it to warm up too. I have been wearing short sleeves with cardi's over them. I just can't bear to pay close to 100 for an item. Not unless it is a Lettosdoffir (sp?)or something like it on sale. Oakbrook Anthro gets alot of shipments in of other store's surplus. I know the Geneva store often send their stuff there.

  6. April 16, 2009 / 2:40 pm

    I find myself buying what I want, just less of it. I really want the Hushed & Lush top and I live near S.F.area so it is supposed to warm up to 80's this weekend… I don't want to wait for it to go on sale! So (impulsively) I will buy it full price. I just don't buy AS much as I used to.

  7. April 17, 2009 / 12:23 am

    Blondmoma, now I know why the sale room in Geneva always looks picked over. I never make it to Oakbrook as often as I want. Can't make it there, shop and drive back before the kiddie is done with school (11:30). And yes, I did get a pedicure. Seems a shame to cover it up with shoes. I hate to pay a lot for summer clothes. T-shirts and tops never seem worth it like a sweater does. I don't mind paying a bit more for shorts, they wear better. Enjoy tomorrow the weather will be good here!

  8. April 17, 2009 / 12:33 am

    Georgine, just as a FYI- Geneva is awesome at searching for items from other stores that are on sale. I have seen something online and not wanted to pay the shipping. They have found it for me and shipped it for free. Oakbrook will do it but they take forever. Yes, looking forward to the good weather. Finally!


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