Actionable news
0
All posts from Actionable news
Actionable news in URBN: Urban Outfitters, Inc.,

Urban: Philadelphia, Pa November 16, 2015 For Immediate Release Contact:

The following excerpt is from the company's SEC filing.

Director of Investor Relations

(215) 454-4806

Urban Outfitters Reports Record Q3 Sales

PHILADELPHIA, PA, November 16, 2015 - Urban Outfitters, Inc. (NASDAQ:URBN), a leading lifestyle specialty retail company operating under the Anthropologie, Bhldn, Free People, Terrain and Urban Outfitters brands, today announced net income of $52 million and $152 million for the three and nine months ended October 31, 2015, respectively. Earnings per diluted share were $0.42 and $1.18 for the three and nine months ended October 31, 2015, respectively.

Total Company net sales fo r the third quarter of fiscal 2016 increased 1% over the same quarter last year to a record $825 million. Comparable Retail segment net sales, which include our comparable direct-to-consumer channel, increased 1%. Comparable Retail segment net sales increased 3% at Free People and 1% at Urban Outfitters, while the Anthropologie Group was flat. Wholesale segment net sales declined 5% due to shipment delays at our new distribution facility in Gap, Pennsylvania.

I am pleased we delivered sales, margin and profit growth in the third quarter despite weaker customer traffic, said Richard A. Hayne, Chief Executive Officer. I believe the strong customer response to expanded category offerings at each brand bodes well for our future growth, finished Mr. Hayne.

Net sales by brand and segment for the three and nine month periods were as follows:

Three Months Ended

Nine Months Ended

339,616

340,413

977,498

946,701

341,112

332,872

1,023,160

987,171

144,530

141,185

431,070

378,161

825,258

814,470

2,431,728

2,312,033

Net sales by segment

Retail Segment

765,525

751,451

2,246,274

2,143,997

Wholesale Segment

59,733

63,019

185,454

168,036

Anthropologie Group consists of the Anthropologie, Bhldn and Terrain brands

For the three months ended October 31, 2015, the gross profit rate increased by 11 basis points versus the prior years comparable period. The increase in gross profit rate was primarily driven by almost 150 basis points of improvement in the Companys maintained margin due to significant improvement in the Urban Outfitters brand markdown rate which was partially offset by lower maintained margins in the Anthropologie Group and Free People retail segments. The Companys maintained margin improvement was partially offset by approximately 100 basis points of deleverage in delivery and fulfillment center expenses primarily related to the ongoing transition of our South Carolina fulfillment center to Gap, Pennsylvania, and increased direct-to-consumer sales penetration. This was further offset by the impact of currency translation for the quarter. For the nine months ended October 31, 2015, the gross profit rate declined by 63 basis points versus the prior years comparable period. The decline in gross profit rate was primarily driven by higher delivery and fulfillment center expenses largely related to the increase in direct-to-consumer sales penetration as well as incremental costs associated with the Gap, Pennsylvania, fulfillment center transition.

As of October 31, 2015, total inventories decreased by $26 million, or 5%, on a year-over-year basis. The decrease in total inventories is primarily related to the decline in comparable Retail segment inventories, which decreased 9% at cost.

For the three months ended October 31, 2015, selling, general and administrative expenses, expressed...


More