>>
Home / Knowledge / News / Apparel/Garments / Urban Outfitters net sales down 2% to $873 mn in Q2 FY18
Urban Outfitters net sales down 2% to $873 mn in Q2 FY18
18
Aug '17
Net sales of Urban Outfitters Inc for the second quarter of fiscal 2018, ended July 31, 2017, decreased 2 per cent to $873 million, compared to the last fiscal. Its net income was $50 million for the second quarter and $62 million for the six months ended July 31, 2017. Earnings per diluted share were $0.44 and $0.54 for Q2 and 1H FY 2018, respectively.

Comparable retail segment net sales of the company, which include the comparable direct-to-consumer channel, decreased 4.9 per cent. By brand, comparable retail segment net sales increased 2.9 per cent at Free People, but decreased 4 per cent at the Anthropologie Group and 7.9 per cent at Urban Outfitters. The decline in comparable retail segment net sales was due to negative retail store sales, which was partially offset by continued sales growth in our direct-to-consumer channel. Wholesale segment net sales increased 10 per cent.

"While we are disappointed in our second quarter performance, we have a number of initiatives underway including: speed to customer, international growth, wholesale expansion and digital investments. We believe these initiatives combined with encouraging fashion apparel trends could lead to improved topline performance in future quarters,” said Richard A Hayne, chief executive officer, Urban Outfitters.

For the three and six months ended July 31, 2017, the gross profit rate decreased 440 basis points and 369 basis points versus the prior year’s comparable periods, respectively. The decline in gross profit rate for both periods was driven by higher markdowns due to underperforming women’s apparel and accessories product at Anthropologie and Urban Outfitters, deleverage in delivery and logistics expenses primarily due to the penetration of the direct-to-consumer channel and deleverage in initial merchandise mark-ups at the Anthropologie and Urban Outfitters brands due to a change in product mix, said the company in a press release.

As of July 31, 2017, total inventory decreased by $2 million, or 0.6 per cent, on a year-over-year basis. Comparable retail segment inventory decreased 4.6 per cent at cost, which was partially offset by inventory to stock non-comparable stores.

Selling, general and administrative (SGA) expenses decreased by $2.1 million, or 1 per cent, during the three months ended July 31, 2017, compared to the prior year’s comparable period primarily due to the net benefit of our store organisation project. For the three months ended July 31, 2017, SGA expenses, expressed as a percentage of net sales, deleveraged by 26 basis points when compared to the prior year’s comparable period primarily due to the negative comparative retail segment net sales and increased spending in digital marketing.

SGA expenses increased by $5.2 million, or 1.2 per cent, during the six months ended July 31, 2017, compared to the prior year’s comparable period primarily due to approximately $8.1 million, or 50 basis points, of nonrecurring expenses related to severance and fees associated with our store organisation project. For the six months ended July 31, 2017, SGA expenses, expressed as a percentage of net sales, deleveraged by 62 basis points when compared to the prior year’s comparable period primarily due to the nonrecurring expenses related to our store organisation project and the negative comparable retail segment net sales.

The company’s effective tax rate for the second quarter of fiscal 2018 was 35.1 per cent compared to 35.5 per cent in the prior year period. The effective tax rate for the first half of fiscal 2018 is 37.1 per cent compared to 36.7 per cent in the prior year period. The increase in the first half effective tax rate was due to the ratio of foreign taxable losses to global taxable profits in the first half and the prospective adoption of the new accounting standard related to share-based compensation.

Net income for the three and six months ended July 31, 2017, was $50 million and $62 million, respectively, and earnings per diluted share was $0.44 and $0.54, respectively.

On February 23, 2015, the company’s board of directors authorised the repurchase of 20 million common shares under a share repurchase programme. Under this authorisation, the company repurchased and subsequently retired 5 million common shares for approximately $91 million during the six months ended July 31, 2017. The company repurchased and subsequently retired 1.3 million common shares for approximately $46 million under this authorisation during the year ended January 31, 2017. As of July 31, 2017, 1 million common shares are remaining under this authorisation. (KD)

Fibre2Fashion News Desk – India


Must ReadView All

Pic: Shutterstock

Textiles | On 26th Jan 2022

Vietnam-US trade hits $111.56 bn in 2021

Vietnam-US trade hit $111.56 billion in 2021, up by nearly $21...

Pic: Shutterstock

Textiles | On 26th Jan 2022

Turkey using less coal, hydropower; use of renewables, gas up: Ember

The use of coal and water for energy in Turkey reduced in 2021, while ...

Pic: Bangladesh Parliament Secretariat/Facebook

Apparel/Garments | On 26th Jan 2022

Trade Organisation Bill, 2022, introduced in Bangladesh parliament

The Trade Organisation Bill, 2022, aimed at allowing foreign traders...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Always best to produce under own supervision

Textile Industry, Head honchos

Textile Industry
Head honchos

Biggest learning was adaptability

Textile Industry, Head honchos

Textile Industry
Head honchos

Consistency is the first rule of social media

Yawer Ali Shah,

Yawer Ali Shah

Synthetic colours and dyes were all the rage till the very first ban on...

Andrea Pelissero,

Andrea Pelissero

Located near Milan, Italy, and with 50 years of experience in the textile...

Ritu Oberoi,

Ritu Oberoi

Established in 2018, Forsarees is a socially driven business enterprise,...

Robert Brookins, Alexium International

Robert Brookins
Alexium International

Alexium International is a specialty chemical development company...

Dave Rousse, INDA

Dave Rousse
INDA

INDA, a global association of the nonwoven fabrics industry, has been...

Brad Holschuh, Wearable Technology Lab, University of Minnesota

Brad Holschuh
Wearable Technology Lab, University of Minnesota

A new study led by researchers at the University of Minnesota's Design of...

Vidur Adlakha & Riccardo Bennidini, La Fuori

Vidur Adlakha & Riccardo Bennidini
La Fuori

With an active presence in US, Italy and India, clothing brand La Fuori...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Samatvam, a womenswear brand that blends age-old craftsmanship with modern ...

Abhishek Agarwal, Purple Style Labs

Abhishek Agarwal
Purple Style Labs

Late Indian fashion designer Wendell Rodricks, is known for his...

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

Leave your Comments

ESTEEMED CLIENTS

Chori Company Limited
Landmark Group
Recron Polyester from Reliance Industries Limited
John Varvatos
H;&M Hennes ;& Mauritz (Far East) Ltd
BIANCA
Arvind Limited
Target Corporation (MN)
BIRLA CENTURY A DIVISION OF CENTURY TEXTILES AND INDUSTRIES
Hela Clothing Pvt Ltd
Midas Clothing Limited
Calvin Klein
Sateri (Jiujiang) Fiber Co.,Ltd
Gloria Jeans
Under Armour Global Sourcing Ltd
THE BOMBAY DYEING ;& MFG.CO. LTD
Green Fibre
Sainsbury's Argos Asia Limited
PVH Corporation
The Top Form Brassiere Manufacturing Company Limited
Aquarelle Clothing Limited
Gap International Sourcing Limited
Restoque S.A.
SYNERGIES HONG KONG LIMITED
Helly Hansen Far East Ltd
Gokaldas Exports Limited
Lenzing Aktiengesellschaft
The LYCRA Company Singapore  Pte. Ltd
J ;& P Coats
C;&A Sourcing International Ltd
Truetzschler India Private Limited
Gatsby Africa
Benetton Group
OVS Hong Kong Sourcing Ltd.
Permoda(Koaj/Armi/Pronto/Bkul)
Brandix Lanka Limited
International Textile Manufacturers Federation
HYOSUNG CORPORATION INDIA PRIVATE LIMITED
Rosset ;& Cia Limited
SHAHI Exports Pvt Ltd
Groz-Beckert East Asia LLP
Vianney Textil Hogar S.A. De C.V.
Cat Tuong Real Estate Group Joint Stock Company
Esprit Europe Services GmbH
IKEA of Sweden AB
Asos
Walmart
Deckers Outdoor (Guangzhou) Consultant Co., LTD.
Amazon China
Varner AS Retail
Tommy Hilfiger
Bluestem Global Sourcing Limited
Chico’ FAS
KIABI
Babyshop
Guess Europe Sagl,
Eastman Chemical Company
BIMBA ;& LOLA SL
Lifestyle
Abit
Desigual - ABASIC, S.A.
Splash
Hirdaramani International Export Private Limited
Sportswear Company Spa
T.T. Limited
Puma
Vardhman Textile Ltd
Tchibo GmbH
Reiter India Private Limited
Decathlon
Grasim Industries Limited
Aramark Uniform ;& Career Apparel, LLC
MAS Active / MAS Kreeda / MAS Bodyline
Page Industries Limited (Bangalore)
G-Star Raw C.V.
IDH – The Sustainable Trade Initiative
Lululemon Athletica Inc
Boardriders Asia Sourcing Limited
Lisa S.P.A.
NITI Aayog
Alison Hayes Romania
Phong Phu international JSC (PPJ)
KAS Direct Sourcing
TESCO INTERNATIONAL SOURCING LIMITED
Tory Burch Hong Kong Ltd
Maceton Limited
Huntsman (Singapore) Pte Ltd
Etam Group Strategy Hong Kong Limited
Sportmaster Ltd.
Rayonese Textile Inc., Division de Culp Inc.

January 2022

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


Advanced Search