Urban Outfitters predicts 60% fall in same-store sales

Urban Outfitters has projected a 60% decline in same-store sales in the second quarter due to "tepid" demand during the COVID-19 pandemic, pushing its shares down 6%.

The group, which includes retailers Anthropologie and Urban Outfitters posted a preliminary net loss of £112 million ($138 million) for the three months to 30 April 2020.

The worse-than-expected preliminary results for first-quarter reported by Urban Outfitters can be partially attributed to the fact that its stores remained closed for approximately half of the quarter due to coronavirus movement restrictions.

Despite this, there had been a 63% rise in new online customers in the first quarter, whilst products for the home and casualwear were “overperforming”.

Net sales for the period fell by 31.9% compared to the same period last year to £472 million ($588 million).

Urban Outfitters also reported that wholesale net sales had declined by 74%.

In April, Urban Outfitter owners URBN today announced it will take measures to protect the financial position of the business, including borrowing $220 million.