Shares of Urban Outfitters (NASDAQ:URBN) rose sharply on Wednesday, following the release of the lifestyle retailer s first-quarter financial results. As of 2 p.m. EDT, the stock s price was up roughly 9%.
So what
Urban Outfitters total sales soared 57.6% year over year to $927 million, fueled by a 51% jump in comparable-store sales. The gains were broad-based. Comps for the company s three core brands Free People Group, Anthropologie Group, and Urban Outfitters rose 77%, 50%, and 42%, respectively.
Retail store traffic is recovering as the pandemic subsides. Image source: Getty Images.
Urban Outfitters net income, in turn, improved to $54 million, or $0.54 per share, compared to a loss of $138 million, or $1.41 per share in the year-ago period.
Dive Brief:
In a flurry of personnel changes announced concurrently with the company s holiday sales results, Urban Outfitters Group on Tuesday said that CEO Trish Donnelly is leaving the company to pursue a new career opportunity, according to a company press release. Donnelly s last day is Jan. 31.
Sheila Harrington, who will continue operating as the CEO of Free People Group, will replace Donnelly as CEO of the Urban Outfitters Group. Harrington previously worked with Gap and Bloomingdales.
Gabrielle Conforti, currently the chief merchandising officer for the Urban Outfitters brand, has been promoted to president of Urban Outfitters North America. Emma Wisden will continue as the managing director of Urban Outfitters Europe and will also lead the Urban Outfitters brand wholesale business. Both Conforti and Wisden will report to Harrington.
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US retailer Urban Outfitters is shaking up its management as Trish Donnelly prepares to step down as CEO of its namesake brand at the end of the month to pursue a new career opportunity.
Following Donelly s departure on 31 January, Free People boss Sheila Harrington will become CEO for both Urban Outfitters Group and Free People Group.
In addition, Gabrielle Conforti, currently the chief merchandising officer for the Urban Outfitters brand, has been promoted to president, Urban Outfitters North America, while Emma Wisden will continue as managing director, Urban Outfitters Europe, and will lead the Urban Outfitters brand wholesale business. Both Conforti and Wisden will report to Harrington.
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Urban Outfitters shares were down about 6% in early Wednesday trading. Tolga Akmen / AFP via Getty Images
Shares of
Urban Outfitters are sinking early Wednesday after a disappointing holiday sales update, where the apparel retailer highlighted challenges that soaring Covid-19 case counts presented during the key selling season.
Urban Outfitters (ticker: URBN) said late Tuesday that sales for November and December fell 8.4% year over year, and same-store sales fell 9%, as the pandemic kept shoppers away from stores. Analysts were hoping for roughly flat same-store sales for the quarter as a whole. Customers who did shop in store had stronger conversation rates meaning they tended to buy more but that wasn’t enough to offset reduced traffic, nor was a double-digit increase in digital sales.