Urban Outfitters 2Q profit drops 14 percent

PHILADELPHIA -- Apparel retailer Urban Outfitters Inc. said Thursday that its second-quarter profit fell 14 percent, stung by same-store sales declines at its Anthropologie, Free People and namesake stores and higher expenses.

Net income slipped to $49 million, or 29 cents per share, from $57 million, or 33 cents per share, during the same period a year ago.Analysts polled by Thomson Reuters expected earnings of 26 cents per share. Analysts' estimates normally exclude one-time items.

Selling, general and administrative expenses climbed to $108.7 million from $103.6 million.

For the period ended July 31, sales edged up 1 percent to $458.6 million from $454.3 million.The results narrowly missed Wall Street's estimate of $458.7 million.Sales at stores open at least a year, known as same-store sales, dropped 6 percent during the quarter.

Same-store sales are a key indicator of retailer performance since they measure growth at existing stores rather than newly opened ones.

The apparel retailer reported a 4 percent same-store sales drop-off at Anthropologie and a 16 percent Free People decline. Same-store sales slipped 8 percent at its namesake stores. link.....