Hayne to Succeed Senk as Urban Outfitters’ CEO

Glen Senk resigned as CEO of Urban Outfitters on Monday, and has been succeeded by president and chairman Richard Hayne.

The company did not give a reason for Senk’s departure, but published reports say he left to pursue other opportunities.

Senk, who also resigned from the Board of Directors, will remain with Urban Outfitters to assist management with the transition, the company said in a release.

Hayne is a co-founder of Urban Outfitters, and has been chairman and president since the company went public in 1976.

Urban Outfitters, which also owns the Anthropologie, Free People, BHLDN and Terrain brands, said last week that it recorded record holiday sales. For the two months ended Dec. 31, total company net sales increased to $577 million, or 11% over the same period last year. Comparable retail segment net sales, which include its direct-to-consumer channels, increased 4% while comparable store net sales were flat.

For the 11-month period ended Dec. 31, total company net sales increased to $2.3 billion or 9% over the same period last year. Comparable retail segment net sales were flat while comparable store net sales decreased 4%. Direct-to-consumer comparable net sales rose 15% for the period and wholesale segment net sales increased 11%.

Though sales are up, Urban Outfitters’ profits are down. Gross profit margin percentage declined by 571 basis points for the three months ended Oct. 31 vs. the prior year’s comparable period. For the nine months ended Oct. 31, gross profit margin percentage declined by 507 basis points vs. the prior year.

Urban Outfitters said the decline was primarily due to increased merchandise markdowns to clear slow moving women’s apparel inventory at both Anthropologie and Urban Outfitters, as well as occupancy deleverage caused by negative comparable store sales.