US: Urban Outfitters posts Q3 profit after sales rise
- Q3 profit up 17% to $60m
- Sales rose 14% to $693
- Gross margin rate increased 222 basis points
Teen fashion retailer Urban Outfitters has posted a 17% rise in third-quarter net profit thanks to improved margins and a reduction in markdowns.
Net income reached US$60m over the three months to 31 October compared to $51m last year. Income from operations increased 27.5% to $93.5m.
Net sales rose 14% to $693m, while comparable store sales edged down 1%. Direct-to-consumer sales jumped 36% and wholesale sales grew 7%. Comparable sales at its retail division were up 8% driven by gains within its Free People, Urban Outfitters and Anthropologie brands.
Gross profit rate improved 222 basis points due to a reduction in the number of markdowns.
"Favourable customer response to our product offerings and better marketing resulted in record third quarter sales and significant margin improvement," said CEO Richard Hayne.
"We see this trend continuing into the fourth quarter which bodes well for our holiday season."
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