American fashion retailer Urban Outfitters has registered a fall of 3.41 per cent to US $ 224.48 million in its net income in the fiscal 2016, ending January 31, 2016 as against US $ 232.42 million in the corresponding period last year. However, net sales of the retailer for the reporting period zoomed 3.67 per cent to US $ 3,445.13 million as compared to US $ 3,323.07 million in Fiscal Year 2015.
“Fashion retailers had a difficult 2015. It is relatively easy to list the many headwinds that might have caused such a phenomenon: anemic growth, stagnant household incomes, increased spending on non-discretionary items, increased competition from newer retailers – both traditional and online, stiff deflationary pressures and increased competition from trending categories like electronics and dining out,” said Richard Hayne, Chairman, President and CEO, Urban Outfitters.
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The company said in release that a major fashion shift is the solution to the declining income from apparel sales. “The last major fashion shift was ten years ago, when the skinny bottom returned to popularity. Since then, we have had all varieties of skinny: low-rise, high-rise, colour, black, white and print; washed, sanded, sliced and destroyed; yoga and active; leggings, jeggings and stretch,” Hayne averred. He added that today, the customer has a closet full of various skinny bottoms and she has many, many long tops and sweaters to go over them. Without fashion need to drive her purchases, the customer can easily defer her apparel spend.
Urban Outfitters operates in the United States of America, Belgium, Canada, Denmark, France, Germany, Ireland, Netherlands, Sweden, United Kingdom and Spain. It retails women’s and men’s fashion apparel, footwear, beauty and accessories, activewear and gear, etc.