US: Urban Outfitters Q1 profit falls on weaker margins
- Q1 net income fell 12% to $34m from $38.6m
- Total sales rose 9% to a record $569m from $524m
- Gross margin fell to 35.6% from 36.9%
Retailer Urban Outfitters Inc has posed a 12% drop in first-quarter profit after the cost of opening new stories and higher markdowns on a few women's apparel lines offset a rise in sales.
The company, which operates the Anthropologie, Free People and Urban Outfitters brands, said comparable store sales fell 1% in the three months to 30 April.
But including the direct-to-consumer channels saw comparable retail segment sales rise by 2% to $537.7m. Gains of 2% to $61.7m at Free People and a rise of 6% to $266.4m at Urban Outfitters offset a 2% fall to $235.1m at Anthropologie.
Direct-to-consumer comparable net sales increased 15% to $117.1m and wholesale revenues were also up by 2% at $31.2m.
The company's CEO Richard Hayne said the record first quarter sales "were driven in part by positive regular price 'comp' sales."
He added: "We are encouraged by the customer response to the steady progress our brands have made in creative and product execution."
Gross margin fell to 35.6% from 36.9% with the cost of opening new stores and slightly higher markdowns on a few women's apparel categories across all brands contributing to the decline.
The BRIC countries are far from being the only emerging market suppliers for the global apparel sector - and a knot of competitors such as Bangladesh and Vietnam have long been vying for business. But...
Fashion retailer Urban Outfitters has expanded into Japan through a distribution agreement with apparel firm World Co. ...
Men's wear manufacturer Haggar Clothing Co has appointed Tony Anzovino as vice president of sourcing as it positions itself for further growth....
Fashion retailer Urban Outfitters recorded an 8% increase in net profit in the three months to 31 July, boosted by a strong increase in direct to consumer sales....
- Why Inditex is "clear winner" in fast fashion
- Why fast fashion isn't a case of one size fits all
- Brexit blow to global apparel industry confidence
- Sir Philip Green blamed for the collapse of BHS
- North Face has holistic view on harmful chemicals
- Vietnam mulls wage freeze to boost competitiveness
- US Q2 in brief - Columbia Sportswear, Rocky Brands
- VF Corp cuts guidance as Q2 profit plunges 70%
- Teijin launches polyester hook-and-loop fastener
- Ananta Group hits back at Bangladesh union claims
- Central America strategic sourcing review - a focus on Guatemala, El Salvador and Honduras
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- World Textile and Apparel Trade and Production Trends: the EU - June 2016
- Primark Stores Limited: Retailing - Company Profile & SWOT Analysis
- Global market review of lingerie - forecasts to 2020