Urbanoutfitters Profits Have Risen, But Apparel Retailing Is Not Optimistic.

U.S.A

Group Urban Outfitters CEO Richard Hayne revealed on Tuesday that the company's second quarter profit growth was strong.

The CEO pointed out that consumers' enthusiasm for fashion is higher than ever, but it hasn't revived.

The company's net income increased by 15.1%, from $66 million 800 thousand last year to $76 million 900 thousand, and earnings per share increased from 52 cents a year earlier to 66 cents.

It was 10 cents more than 56 cents earlier than analysts had predicted, and Urban Outfitters rose 10.1% in after hours trading at $34.4 a share.

In the first three months of July 31st, revenue grew by 2.7%, from $867 million 500 thousand last year to $890 million 600 thousand, an increase of 1% over the previous year, of which Urban Outfitters grew 5%, while FreePeople's performance was flat, while Anthropologie Group's performance fell by 3%.

The performance is positively driven by the positive comparable turnover and the so-called "substantial improvement in profit margins" by Hayne.

The company said its gross margin increased by 178 points to 38.45% of its turnover, and the improvement was mainly caused by UrbanOutfitters and AnthropologieGroup.

Driven by the two brands, the profits were flat, which resulted in higher profit margins and lower commodity discounts compared with last year.

But Urban Outfitters is still right.

The prospect of retail is worried, and Richard Hayne says it is ready to cut stores in the retail market.

He said that the pformation of fashion retailing is taking place, and once it becomes a trend, there is nothing to stop it.

There is no doubt that the CEO implies the impact of the electricity supplier.

Richard Hayne stressed that not only is Messi department store closed, many brand stores are shutting down, but some Urban Outfitters competitors are closing their stores at a reasonable speed, but this is a positive thing for the industry. Everyone is talking about closing stores, which means the change is coming.

He pointed out that the concept of physical stores is still effective, but in the end, a small number of large experiential stores can survive.

The performance of apparel retailing is becoming more and more uncertain, and the performance of Urban Outfitters has fallen by 10%.

Richard Hayne has pointed out that the consumption of household products and catering expenses of Urban Outfitters consumers occupy most of the total consumption. Because of the fluctuation of clothing prices, consumers' consumption in clothing is decreasing year by year.

Urban Outfitters may have seen some opportunities to expand the market in other fields with the change and experience of the fashion market. Urban Outfitters bought a pizza chain called PizzeriaVetri earlier last year.