Urban Outfitters Chief Executive Officer Richard Hayne has revealed that he is "disappointed by the results at the Urban Outfitters brand."
"There is much work to be done to improve the merchandise margins and store performance at the Urban brand, but I see positive signs as shown by strong results at the brand's direct-to-consumer channel," he said, according to Fortune.
Same-store sales at the clothing store have dropped by 7 percent, with sales dropping by $1.5 million. However, the company has reported a quarterly profit of $47 million, down nearly a third annually, Fortune also reports.
For the month of October alone earnings fell 33 percent and some analysts have suggested that they will continue to drop if their marketing campaigns remain the same.
Despite offering promotions and discounts on a wide array of products, the company has largely maintained its marketing campaign.
Company officials have not announced specific plans for bringing sales and profits back up.
