Urban Outfitters net income jumps to $93 mn in H1 2019

22 Aug '19
2 min read
PIc: Urban Outfitters
PIc: Urban Outfitters

Urban Outfitters, a lifestyle products and services company, has registered net income of $60 million and $93 million for the three and six months ending July 31, 2019, respectively. Earnings per diluted share were $0.61 and $0.91 for 3 and 6 month period. Total company net sales for 3 months decreased 3 per cent over same period last year to $962 million.

Comparable Retail segment net sales decreased 3 per cent, driven by negative retail store sales, partially offset by growth in the digital channel. By brand, comparable Retail segment net sales increased 6 per cent at Free People and decreased 3 per cent at the Anthropologie Group and 5 per cent at Urban Outfitters. Wholesale segment net sales decreased 8 per cent.

"I am pleased to report that customer reaction to our early fall apparel assortments have improved significantly from our second quarter results," said Richard A Hayne, chief executive officer. "Third quarter-to-date ‘comp’ sales are positive at all three brands."

For the three and six months ended July 31, 2019, the gross profit rate decreased by 304 basis points and 242 basis points versus the prior year’s comparable periods, respectively. The decrease in gross profit rate for both periods was driven by higher markdowns, deleverage in delivery and logistics expenses and store occupancy deleverage. The higher markdowns were largely driven by underperforming women's apparel at the Anthropologie and Urban Outfitters brands. The deleverage in delivery and logistics expenses was primarily due to the increase in penetration of the digital channel. The deleverage in store occupancy was due to negative store and Retail segment comparable net sales.

During the six months ended July 31, 2019, the company opened a total of seven new retail locations including: three Anthropologie Group stores, three Free People stores and one Urban Outfitters store; and closed five retail locations including: two Anthropologie Group stores, one Free People store and two Food and Beverage restaurants. During the six months ended July 31, 2019, one Anthropologie Group franchisee-owned store was opened.

Urban Outfitters 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. (PC)

Fibre2Fashion News Desk – India

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