UO Third Quarter Revenue Is Poor Or Will Invest In Online Business

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In the 2016 quarter of fiscal third, its revenue fell short of expectations, and its share price plunged 9% to $35.41 per share.

In the three months ended October 31st, net profit of Urban Outfitters declined 8.9% to 47 million 400 thousand US dollars compared with 52 million US dollars in the same period last year, and the earnings per diluted share were 40 cents, lower than 44 cents expected by analysts, and the gross profit margin fell to 34.8% compared with last year.

Sales increased by 4.5% to $862 million 500 thousand compared with $825 million 300 thousand a year earlier, lower than analysts' expectations of $869 million 100 thousand, up 5.2% from year-on-year sales, while the group's Free People declined by 1.5% and Anthropologie decreased by 2.7%.

It is reported that the group has invested heavily in investing in online businesses.

Richard Hayne, chief executive of the group, said that consumer online shopping continued to grow. This is also the main reason for the group to invest heavily in talent and technology. It will also expand the group online classification, improve and personalize the digital experience, and make delivery orders more efficient.

Richard Hayne also revealed that

The era of rapid retail change has also provided the best opportunities for the pformation of the group, but it also poses the greatest risk.

Christian Buss, an analyst at Credit Suisse, points out that Urban Outfitters has been struggling with the implementation of the concept. Although the concept power is growing, it is dragged down by the negative performance of its brand Anthropologie and Free People, and the new concept of the group still fails to achieve sustained strong earnings growth for the group.