Urban Outfitters Sales In The Two Quarter Deteriorated Sharply, Far From Market Expectations.

According to the world clothing shoes and hat net, Urban Outfitters Inc. (NASDAQ:URBN) disclosed in the latest 10-K SEC document that it has recorded a high single digit decline in the same store sales since the two quarter of May. Its performance deteriorated sharply compared with the first quarter, and far from market expectations. The trigger group's share price fell by a maximum of 11.1% on Thursday, and dropped to a 8 year low of 16.19 dollars.

Inc. did not comment further on the specific sales performance, but the Baird Equity Research of the securities company revealed that Frank J.Conforti, the chief financial officer of the group, was "cautious" in the recent "fireside talks" for the short term prospect.

According to the broker, sales are mainly concentrated in the two biggest Urban Outfitters and Anthropologie.

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The performance is particularly poor. In recent weeks, a sharp drop in conversion has left management unprepared.

According to the data, in the first quarter of April 30th, the sales volume of Urban Outfitters Inc. in the same store decreased by 3.1% over the same period last year, which was 2.3% higher than that expected by the market. Urban Outfitters and Anthropologie recorded a decrease of 3.1% and 4.4% respectively. The group said that even if the stores had strong discount, the passenger flow was still sparse; Free People had a 1.5% increase; and there were double-digit gains directly in the face of consumer channels.

FactSet's overall forecast for the same quarter sales in the two quarter was down 2.3%.

Richard Hayne, chief executive of Urban Outfitters Inc., pointed out in the first quarter performance analyst meeting in May that it was a difficult period for fashion retailers in the US. The group's performance also reflected such difficulties, but the difficulty was confined to the United States, and the passenger flow in the local market was described as "depression".

He believes that now North American stores and shopping malls are "too many" and expect to achieve a healthier balance before "more stores will go bankrupt and more brands will disappear".

But Richard Hayne believes that all its brands have great opportunities for continuous growth in wholesale and direct consumer channels.

He expects that with the expansion of e-commerce and the international market, sales directly to consumers can double in 5 years, and the sales share in the international market will also rise from less than 10%. At the same time, the wedding brand BHLDN and home brand Terrain will get the group to increase their resources and expand.

Richard Hayne believes that the growth of these growth strategies can bring "no one billion and hundreds of millions of dollars" to group sales.

After Urban Outfitters Inc. disclosed the latest sales performance, Wells Fargo&Co. (NYSE:WFC) Wells Fargo Bank and Wolfe Research respectively reduced the target price of Urban Outfitters Inc. ($18) to US $16 and US $17 from 19 US dollars, and the ratings remained "flat with the big market".

The stock fell 10.3% to 16.35 dollars on Thursday, and rebounded up to 9.7% on Friday, the highest value being 17.94 dollars, narrowing the cumulative decline this year to 37.1% so far this year.

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