Business
URBN Provides Business Update Related to COVID-19
PHILADELPHIA, March 31, 2020 (GLOBE NEWSWIRE) -- Urban Outfitters, Inc. (NASDAQ:URBN), a leading lifestyle products and services company which operates a
About this update from Urban Outfitters, Inc.
[{"type":"text","content":"PHILADELPHIA, March 31, 2020 (GLOBE NEWSWIRE) -- Urban Outfitters, Inc. (NASDAQ:URBN), a leading lifestyle products and services company which operates a portfolio of global consumer brands comprised of Anthropologie, BHLDN, Free People, Terrain, Urban Outfitters and Nuuly brands and the Food and Beverage division today announced global retail stores will remain temporarily closed until further notice due to the continued spread of COVID-19.\n “The global spread of COVID-19 is affecting every one of us and is certainly impacting URBN, as well. Our efforts, as a company, have been directed at mitigating the risk to our employees and customers while trying to maintain some business so we can continue to support and pay our workers,” said Richard A. Hayne, Chief Executive Officer, URBN. Since March 14 when we closed our stores to the public, URBN has provided ongoing pay and benefits to all store and home office employees impacted by the temporary closures. Even though our digital business continues to operate, the store closures and lower overall demand require a smaller workforce to support the business. As a result, we are furloughing a substantial number of store, wholesale and home office employees for 60 days beginning tomorrow, April 1. Impacted employees will continue to receive enrolled benefits during the furlough period. The company is taking many additional measures to protect our financial position and increase financial flexibility during this challenging time period. Those include: Suspend hiring, eliminate bonuses for FY’21 and delay all merit raises,Borrow $220 million to further protect our cash reserves,Reduce our capital budget by over $100 million by delaying or cancelling projects,Adjust inventory levels by cancelling or delaying many orders and ask for price concessions on those remaining,Suspend the payment of rent temporarily and delay or cancel some planned new store openings,Reduce all non-payroll expenses, including creative, marketing, and travel to name a few,Extend payment terms for both merchandise and non-merchandise vendor invoices,Reduce investments in our growth initiatives such as Nuuly and expansion into China,And finally, reduce senior leadership compensation for the duration of the furlough time period, eliminate Directors’ cash compensation for the remainder of FY’21 and suspend stock buybac...