US: Urban Outfitters Q4 profit slumps 48% on markdowns
By Leonie Barrie | 13 March 2012
- Q4 net income tumbled 47.7% to $39.3m
- Net sales rose 9% to $731m
- Gross margin narrowed to 30.1% from 39.7%
Fashion retailer Urban Outfitters Inc has seen its fourth quarter nearly halve after markdowns to clear slow-moving women's wear impacted margins.
The company, which operates the Anthropologie, Free People and Urban Outfitters brands, said net income in the three months to 31 January tumbled 47.7% to $39.3m, or $0.27 per share, down from $75.2m, or %0.45 per share share, in the same period last year.
But net sales rose 9% to $731m, although comparable store sales fell 1%. Comparable retail segment sales were up 2%, with gains of 3%, 9% and 1% at Urban Outfitters, Free People and Anthropologie respectively.
Direct-to-consumer comparable net sales increased 14% and wholesale segment net sales rose 3% for the quarter. But gross margin narrowed to 30.1% from 39.7%.
"I am pleased that we managed our inventories to appropriate levels at year end even though our margins during the quarter suffered as a result," said CEO Richard Hayne. "Our rate of full-priced selling has improved from fourth quarter levels as we seek to re-establish our historic full-price selling penetration."
For the full year, net income fell to $185.3m or $1.19 per share, down from $273.0m or $1.60 per share the year before. Total company sales rose 9% to $2.5bn, with flat comparable retail segment net sales and a 4% drop in comparable store net sales.
Sectors: Apparel, Finance, Retail
Companies: Urban Outfitters
View next/previous articles
13 Mar 2012 -
Currently reading -
US: Urban Outfitters Q4 profit slumps 48% on markdowns
13 Mar 2012 -
Related research
Women's Attitudes Toward Clothes Shopping - US - December 2010
Nearly nine out of ten women surveyed for this report said that they have shopped for clothing themselves in the past year, and eight out of ten have made a purchase....
This report analyzes the worldwide markets for Bridalwear in US$ Million. The report provides separate comprehensive analytics for the US, Canada, Japan, Europe, Australia, Latin America, and Rest of World. Annual estimates and forecasts are provided...
Related articles
There are currently no comments on this article
Be the first to comment on this article