Retailers have had an uphill battle against online competitors for some time. In many ways, it has forced the industry to bolster their own internet retail in order to counterbalance losses at store locations.
It seems that Urban Outfitters, having followed that same route, still hasn’t been able to completely tip the scale. Formerly a brick-and-mortar staple, even the brand’s rising online selection hasn’t yielded a positive profit overall with continuing losses in stores.
With a 3 percent decrease in profit to $218.1 million, the statistic also marks the third consecutive year in which Urban Outfitters saw declining profits. Sales did rise by 3 percent for the year, ascending to $3.55 billion, but inventory rose to over $338 million in the most recent period alone.
For shareholders, this equates to a drop in earnings per share from $0.61 to $0.55 as of the release of Urban Outfitter’s fourth quarter earnings report.
Chief executive officer, Richard Hayne, spoke regarding the decline and things to come for the brand.
“As we enter a new year, we will continue to shift our efforts and spend into our fastest growing channel,” he stated.
The new fiscal year may bring more shifts in their retail strategy. As of now, more change is one clearest future outcomes in sight for Urban Outfitters as they strategize and plan to become profitable this time next year.