US: Urban Outfitters Q3 profit falls on higher markdowns
- Q3 net income down 30.6% to US$50.7m
- Gross margin fell 571 basis points to 35.4%
- Sales increased 6% over the quarter to $610m
Retailer Urban Outfitters has seen its third-quarter profit fall 30.6% on the back of increased markdowns in its Anthropologie and Urban Outfitters stores.
The company yesterday (14 November) booked a net income of US$50.7m for the three months to 31 October. Gross margin fell 571 basis points to 35.4%, due to increased markdowns to clear slow moving women's apparel inventory at Anthropologie and Urban Outfitters.
Sales increased 6% over the quarter to $610m, with comparable-retail sales, which include direct-to-consumer channels, falling 3%. Comparable-store sales were down 7% over the quarter. Comparable retail net sales were up 14% at Free People, flat at Urban outfitters and fell 7% at Anthropologie.
"We have made progress in many categories during the quarter," said CEO Glen Senk. "We anticipate additional improvements through continued product focus, aggressive inventory management and the organisation changes we announced last week."
Last week, the company announced a series of executive changes, with new leadership at its Anthropologie, Terrain and Urban Outfitters brands.
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