American fashion company Urban Outfitters has not managed to match analysts' turnover expectations in the first quarter of 2015. Slower growth in its Anthropologie brand is the major cause for the weaker results.
Urban Outfitters managed a 739 million dollar (660 million euro) turnover in the first quarter, up nearly 8 %. Nevertheless, analysts had expected more, especially as net profit dropped 12.5 % to 32.8 million dollars (29 million euro).
The major culprit for the weaker results is the Anthropologie brand, despite a 3.8 % turnover increase to 311.4 million dollars (275 million euro). Its parent company has still called that turnover increase a disappointment, mainly because of strong competition from brands like H&M, Zara and Forever 21.
Store-based like-for-like growth also did not manage to reach analysts' expectations of a 5.3 %. Urban Outfitters only managed a 4 % increase, although the company's smallest brand (Free People) were encouraging: like-for-like turnover grew 17 %, while Urban Outfitters as a whole managed 5 % and Anthropologie only 1 %.