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Teenage heartache for Urban Outfitters

Big discounts slashed profits at teenage favourite Urban Outfitters Inc in its latest quarter.
picture of Urban Outfitters store
Out of fashion?

Big discounts slashed profits at teenage favourite Urban Outfitters Inc (NASDAQ:URBN) in its latest quarter.

Like-for-like sales at the retail chain dropped 3.1% in the three months to April while overall revenues fell to $761.2mln against market productions of a rise.

Promotions to get customers through the doors at its two core chains, Urban Outfitters and Apologise, were blamed for the drop.

Gross margins fell by almost three percentage points, which contributed to a 60% fall in net income to US$11.9mln or 10c per share.

Like its rivals, Urban Outfitters is having to contend with intense price competition from online vendors and its own e-commerce sales were amongof the few bright spots identified by chief executive Richard Hayne.

There is a significant opportunity to grow the direct-to-consumer and wholesale arms, he said.

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Urban Outfitters Timeline

Newswire
March 13 2012

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