Urban Outfitters, Inc. (URBN), the lifestyle group based in Philadelphia, has reported a 6.9% decline in net sales for the fourth quarter. The company’s net sales amounted to $1.09 billion, down from $1.17 billion in the same period last year. This drop in sales is primarily attributed to reduced store traffic and occupancy restrictions resulting from the Covid-19 pandemic.

URBN, which currently operates over 630 retail locations, experienced a 7% decrease in comparable retail segment net sales in the fourth quarter. However, the company saw strong double-digit growth in its digital channel, which helped partially offset the decline in in-store sales.

The Urban Outfitters brand recorded a total net sales figure of $428.1 million, with a 6% decrease in comparable retail sales. The Anthropologie Group saw a decline of 11% in comparable retail sales, with net sales amounting to $431.4 million. On the other hand, Free People reported net sales of $219.3 million, with a 6% increase in comparable retail sales.

Despite the challenges posed by the pandemic, URBN CEO Richard A. Hayne mentioned positive sales trends in January, stating that the brands experienced improvement compared to the holiday period. He also highlighted the strong customer reaction to the spring assortments and the positive comparable sales for each brand in the first week of the new fiscal year.

URBN’s wholesale segment net sales also declined by 7% in the fourth quarter. For the full fiscal year, the company’s net sales dropped by 13.4% to $3.45 billion compared to $3.98 billion in the previous year.

In the past twelve months, URBN opened 20 new retail locations under its three main banners. However, the company also permanently closed 10 stores and six franchisee-owned stores during the same period. URBN currently operates more than 630 retail locations across the United States, Canada, and Europe.

URBN plans to release its complete quarterly and annual results, including sales and earnings, on March 2, 2021.

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