- Prachi Singh |
Urban Outfitters, Inc. announced that preliminary net loss for the first quarter was 138 million dollars and preliminary loss per diluted share was 1.41 dollars compared to net income of 33 million dollars or earnings per diluted share of 31 cents, respectively. Total company net sales decreased 31.9 percent to 588 million dollars, while comparable retail segment net sales decreased 28 percent. By brand, the company said in a statement comparable retail segment net sales decreased 19 percent at Free People, 24 percent at Urban Outfitters and 33 percent at the Anthropologie Group. Total retail segment net sales decreased 28 percent and wholesale segment net sales decreased 74 percent.
“The actions we’ve taken during the quarter to strengthen our balance sheet and help preserve liquidity provides us with financial flexibility during this difficult period,” said Richard A. Hayne, the company’s Chief Executive Officer.
The company added that impact of the coronavirus pandemic on the company’s business has resulted in the need to perform impairment assessments of its long-lived assets and while these items are non-cash in nature, a potential change to the provisional impairment expense could materially impact the reported results.
For the three months period, the preliminary gross profit rate decreased to 2 percent from 31.1 percent in the prior year’s comparable period, while preliminary gross profit dollars decreased 95.6 percent to 11.8 million dollars from 269.1 million dollars.
During the quarter, the company opened four new retail locations including two Anthropologie Group stores and two Urban Outfitters stores; and closed one Urban Outfitters store.