Slow sales = bigger discounts at Urban Outfitters
Anthropologie, Free People plan more stores
Shares of South Philadelphia-based Urban Outfitters fell as much as 8% in early trading today, to around $33, a 20-month low, after the company reported a fifth straight quarter of lower sales at its Urban Outfitters brand (donw 12%, more than expected, says Janney analyst Adrienne Tennant), partly offset by stronger sales by its smaller Anthropologie (up 8%) and Free People (up 25%) lines.
Management will cut prices "to clear the excess inventory" this summer, wrote analyst Ike Boruchow for clients at Stern Agee, and boost promotions of its new "Without Walls active lifestyle sub-brand," plus add "enhanced offerings in living, home, beauty, music and even food."
By contrast, Anthrolopogie sales were up, especially for full-priced merchandise and the new BHLDN "petites sub-brand." Anthropologie plans to open up to 1 million additional sq. ft. of stores in the U.S. and Europe, atop 1.3 million currently. Free People sales have been up even more strongly, especially from wholesale shoes, dresses, underwear, athletic wear. That brand plans larger stores, topping 3,000 ft. sq., "double the size of the current average."
























