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Following a less than fruitful fourth quarter, Urban Outfitters Inc. is again reporting disappointing sales for its flagship brand, Urban Outfitters, for the three-month period ending April 30. While net sales at Free People, BHLDN, and Anthropologie saw an increase of up to 25%, sales at Urban Outfitters slumped by 12%.
The brand blames lower merchandise margins and "pre-opening rent expense related to new stores" for its flagship brand's failure to thrive. "While Anthropologie and Free People continue to deliver record levels in sales and profits, Urban Outfitters had a disappointing quarter and is working diligently to regain its fashion footing," said CEO Richard Hayne. Maybe UO's new Without Walls fitness concept will be enough to boost sales the next go-round.
· Namesake Unit Again Cuts into Urban Net [WWD]
· Controversy Puts Urban Outfitters' New Lifestyle Center on Pause [Racked Philly]
· Urban Outfitters profit falls 20 percent, shares fall [Racked Philly]