US: Urban Outfitters Q4 profit slumps 48% on markdowns
- 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 $2.5bn, with flat comparable retail segment net sales and a 4% drop in comparable store net sales.
Fashion retailer Urban Outfitters recorded an 8% increase in net profit in the three months to 31 July, boosted by a strong increase in direct to consumer sales....
This report analyzes the worldwide markets for Bridalwear in US$ Million. The report provides separate comprehensive analytics for the US, Canada, Japan, Europe, Australia, Latin America, and Rest of ...
- PSF 2014: No one size fits all in apparel sourcing
- PSF 2014: Shifting focus from cost to consumer
- Garment manufacturers eye Myanmar outsourcing
- Bangladesh industry development moving backwards
- PSF 2014: Ten sustainability takeaways
- Adidas China supplier in discussions over strike
- Gap issues mirror widespread industry challenges
- Bangladesh PM asks clothing buyers to pay more
- Jones CEO to depart as Sycamore splits business
- H&M "pushing the process" on sustainable fashion
- Ethiopia – the emerging textile and clothing industry
- Antimicrobial fibres, fabrics and apparel: innovative weapons against infection
- Trade and trade policy: clothing imports, consumer expenditure and trends in five emerging markets: Brazil, Colombia, India, Kazakhstan and Peru, 4th quarter 2013
- Sustainable Textiles for Apparel: Fact, Fiction and Future Prospects
- Jeans in Italy