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

Apparel/Garments | On 26th Jun 2017

GSTN registration reopens

E-commerce operators and TDS (tax deducted at source) deductors can...

Textiles | On 26th Jun 2017

Expedite release of ROSL pending claims: TEA to Centre

The Tiruppur Exporters' Association (TEA) has again urged Union...

Textiles | On 26th Jun 2017

'Export promotion schemes to continue under GST regime'

The export promotion schemes will continue under GST regime, said...

Interviews View All

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Marten Alkhagen
Swerea IVF AB

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

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

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

news category


Related Categories:
July 2017

July 2017

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

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search