Ad Market Expands 5% In Q2 Despite Mass Market Weakness, Declines Among Major Media

Urban Outfitters, Inc. announced net sales for the three months and year ended January 31, 2021. Total Company net sales for the three months ended January 31, 2021, decreased 6.9% over the same period last year to $1.09 billion. Comparable Retail segment net sales decreased 7% due to negative retail store net sales as stronger conversion rates could not offset the reduced store traffic caused by the coronavirus pandemic and related occupancy restrictions. Lower store net sales were partially offset by strong double-digit growth in digital channel sales. By brand, comparable Retail segment net sales increased 6% at Free People and decreased 6% at Urban Outfitters and 11% at the Anthropologie Group. Wholesale segment net sales decreased 7%. “I am pleased to report that all three brands registered nice improvement in ‘comp’ sales trends in January from that delivered during the Holiday period,” said Richard A. Hayne, Chief Executive Officer. “We are particularly pleased with how well the brands transitioned into February. Customer reaction to our spring assortments has been quite strong and ‘comps’ for the first week of the new fiscal year were positive at each brand,” finished Mr. Hayne.

*First quarter net sales decrease 57% *Reopened 90 percent of stores to date with reduced hours *Actions taken in response to COVID-19 to preserve liquidity. The decrease in net sales for the first quarter of 2020 compared to the prior year reflects the temporary closure of all stores on March 19 due to the COVID-19 pandemic. Omni sales for the first quarter increased 17 percent over last year. In April, omni sales were 47 percent higher than last year driven by fulfillment from closed stores where allowed. Beginning April 23, the Company began the staggered reopening of stores with reduced hours. To date, the Company has reopened 255 of its 281 stores in accordance with local government guidelines. Traffic in stores has steadily increased each week since reopening and omni sales have continued to be strong, even as more stores opened. Sales continued to recover in May, but remained well below last year.

Mail-Gard®, a division of IWCO Direct and one of the nation’s leading providers of critical communication recovery solutions, announced it is creating a dedicated Advanced Recovery Center at its Warminster, Pa. campus. With a second dedicated recovery center located in Hamburg, Pa., the expansion of Mail-Gard’s footprint will improve service delivery while providing increased efficiency of operations, training, and shared resources. With a total of 105,000-square-feet at the primary location, the Advanced Recovery Center will also allow for future expansion of technology and staff necessary to support a robust platform of business continuity, disaster recovery, and print-to-mail overflow services. To accommodate the change, recovery equipment will be relocated from Minnesota to Pennsylvania. Click Read More below for additional detail.