Customers with their Urban Outfitters purchasing luggage in Soho in New York
Richard Levine | Corbis | Getty Pictures
Urban Outfitters shares tumbled Tuesday after the attire retailer reported disappointing holiday sales and introduced its present chief govt is about to depart on the finish of the month.
Its inventory dropped about 11% in after-hours buying and selling, having closed the day up almost 6%.
Urban Outfitters, which additionally owns the Anthropologie and Free Folks manufacturers, stated present CEO Trish Donnelly will likely be leaving, efficient Jan. 31, to pursue one other profession alternative. It has named Sheila Harrington, present CEO of Free Folks, as CEO of Urban Outfitters, and she’s going to proceed to supervise the Free Folks banner.
Throughout the two-month interval ended Dec. 31, Urban said its total company sales fell 8.4% from a year earlier, whereas same-store sales fell 9% as a result of declines in retailer site visitors due to the Covid pandemic. Similar-store sales observe income each on-line and at shops open for a minimum of 12 months.
Its on-line sales grew double digits, the corporate stated, however that wasn’t sufficient to offset the losses in its shops. Urban stated sales had been up 1% at Free Folks, down 8% at Urban Outfitters, and down 12% at Anthropologie.
The corporate famous its same-store sales throughout the portfolio have “rebounded properly” throughout January. Nevertheless, it expects earnings to be pressured throughout the fourth quarter due, partially, to heightened supply and logistics bills due to the surge it’s experiencing on-line.
For the eleven-month interval ended Dec. 31, Urban stated its whole web sales fell 14.3%, whereas same-store sales dropped 12% total.
Additionally Tuesday, Urban named Gabrielle Conforti, its present chief merchandising officer, as president for Urban’s North America division. Emma Wisden, present managing director for Urban’s Europe division, will lead Urban’s wholesale enterprise, the corporate stated.
Urban Outfitters shares had climbed nearly 15% over the previous 12 months, as of Tuesday’s market shut.