Home / Knowledge / News / Apparel/Garments / Wholesale sales drive Urban Outfitters Q3FY15 revenues
Wholesale sales drive Urban Outfitters Q3FY15 revenues
19
Nov '14
Driven by wholesale segment sales, revenue at NASDAQ listed, Urban Outfitters, a lifestyle apparel retailer, rose 5 per cent from a year ago quarter for the third quarter of fiscal 2015.

Urban Outfitters said its net sales for the third quarter of fiscal 2015, grew to a record $814 million or 5 per cent over the same quarter last year.

Wholesale segment net sales rose 26 percent year-on-year, while comparable retail segment net sales, which include its comparable direct-to-consumer channel, however, fell 1 per cent.

Comparable retail segment net sales increased 15 per cent at Free People brand and 2 per cent at Anthropologie brand and declined 7 per cent at Urban Outfitters brand.

The retailer reported net income of $47 million and earnings per diluted share of $0.35 for the three months ended October 31, 2014.

For the reporting quarter, gross profit margin declined by 295 basis points versus the prior year's comparable period.

“The deleverage is primarily due to lower initial merchandise mark-up followed by higher markdowns and also from negative store comparable net sales,” Urban Outfitters explained.

As of October 31, 2014, total inventories increased by $60 million, or 15 per cent, on a year-over-year basis, which it attributed to inventory bought to stock new and non-comparable stores.

However, comparable retail segment inventories went up by just 8 per cent at cost while dipping 7 per cent in units.

SG&A expenses as a percentage of net sales surged 128 basis points from the prior year quarter from increased marketing and technology expenses which drove higher direct-to-consumer traffic.

The retailer’s effective tax rate for the third quarter of fiscal 2015 was 37.8 per cent, up from 33.3 per cent in the year ago quarter, mainly due to state tax adjustments.

During the second quarter of fiscal 2015, the Urban Outfitters Board again authorized the repurchase of an additional 10.0 million common shares.

As of October 31, 2014, the apparel retailer repurchased and retired 3.9 million common shares for approximately $132 million under the current authorization.

During the nine months ended October 31, 2014, Urban Outfitters opened 29 new stores including; 12 Free People stores, 10 Anthropologie stores and 7 Urban Outfitters stores and closed 1 Urban Outfitters store.

"While we are pleased with delivering record third quarter sales fuelled by strong performances at our Anthropologie and Free People brands, I am disappointed by the results at the Urban Outfitters brand," said CEO, Richard Hayne.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: Myntra

Apparel/Garments | On 3rd Dec 2016

Myntra to be EBITA positive by FY18: CEO Narayanan

Myntra is on track to achieve sustainable growth and be EBITA...

Courtesy: India ITME Society

Textiles | On 3rd Dec 2016

India ITME 2016 opens with over 1050 exhibitors

The India International Textile Machinery Exhibition (India ITME)...

Courtesy: Bruckner

Textiles | On 3rd Dec 2016

Indian textile companies opt for Brückner stenter lines

Indian textile firms Laxmipati Sarees, makers of polyester sarees and ...

Interviews View All

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search