The US retail group Urban Outfitters Inc. was able to slightly improve its sales in the second quarter of the 2022/23 financial year. However, higher costs caused profits to slip significantly. This emerges from an interim report published by the company on Tuesday evening.
Accordingly, group sales in the months of May to July amounted to 1.18 billion US dollars (1.19 billion euros), which corresponded to an increase of 2.2 percent compared to the same quarter last year. The development was slowed down by a drop in sales at the Urban Outfitters retail chain, while the Anthropologie Group, Free People Group, Nuuly and Menus & Venues segments were able to increase their revenues.
The result was burdened, among other things, by extensive discounts and higher freight and personnel costs. Operating profit fell by 48.3 percent to 85.8 million US dollars. Net profit was not even half as high as in the same period last year: it fell by 53.3 percent to 59.5 million US dollars (59.8 million euros).
In the entire first half of the year, the group had sales of 2.24 billion US dollars, exceeding the corresponding prior-year level by 7.2 percent. Net income fell 49.7 percent to $91.0 million.
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