Urban Outfitters' second-quarter numbers are in, and while the struggling chain's net income dipped 20.9 percent from the previous year, results were ahead of analysts' expectations. Thanks to a 16.6 percent jump in online sales to $112.6 million, total sales were up 10.3 percent from a year earlier, to $609.2 million (analysts had expected only $604.5 million).
However, CEO Glen Senk told investors on a conference call yesterday that sales at Anthropologie, Urban's highest priced chain, have been flagging over the past ten days, which drove the company's stock price down. Senk blamed the decline on consumers cutting back in the face of a slowing economic recovery.
Analysts are lowering predictions for Urban's third quarter.
KeyBanc Capital Markets analyst Edward Yruma said in a note to investors that he believes Urban Outfitters' sales and profit margins "will remain weak for the foreseeable future." He lowered his fiscal third-quarter and full-year earnings estimates.
Yruma cited concerns "that the core customer for these brands may be pulling back overall spending in general as a result of the challenging macro economy."
And while they skip the $39.99 shirt dresses and $29.99 leopard oxfords, the rich can continue loading up on their $1,300 eye cream.