Urban Outfitters still struggling

The CEO of Urban Outfitters sounded a positive note about the company's omnichannel strategy despite reporting mixed financial results in the first quarter.

Net income fell 12% to $32.78 million from $37.48 million the same quarter a year earlier. But sales reached a record high of $739 million, up 8% from $686.31 million. Same-store sales rose 4%. All of these numbers were below Wall Street expectations, however.

Richard A. Hayne, CEO, said:“I am pleased to announce record first quarter sales and positive Retail segment comparable net sales at each of our brands," said Hayne. "I believe our retail segment comparable net sales growth is being driven by the success of our omnichannel strategy.”

The company called Anthropologie’s performance a “disappointment” and said it expects more discounts in the business in the second quarter as it tries to attract young women. Increasing competition from fast fashion brands such as H&M, Inditex’s Zara and Forever 21 and a series of fashion misses have turned women away from Urban Outfitters’ stores.