Urban Outfitters reports mixed Q4

US: Urban Outfitters reports mixed Q4 as sales slip 5%

By just-style.com | 7 February 2007

Apparel retailer Urban Outfitters posted a 5% slip in comparable fourth-quarter sales compared to an 8% rise last year on mixed trading among its three nameplates.

Same-store sales at Urban Outfitters stores were down 4% and at Anthropolgie stores they were down 7%, but at Free People stores sales grew 4%.

Total fourth-quarter sales, meanwhile, jumped 13% to US$360.8m.

Direct-to-consumer sales rose 23% and Free People wholesale sales jumped 29% for the quarter.

"Sales continue along the trend established during the holiday period, with our Urban Europe, direct-to-consumer and Free People channels exceeding, and our Urban North America and Anthropologie brands falling short of their plans,'' said Richard A Hayne, chairman and president.

"Entering the new year with leaner and fresher inventory relative to last year, we believe we have opportunity to improve both sales and operating margin performance in the first quarter."

Sales for the year ended 31 January 2007 increased 12% to a record $1.22bn. Total comparable store sales for the period decreased by 6% versus an 11% increase last year.

Direct-to-consumer sales rose by 18% while Free People Wholesale sales surged 39%.

During Fiscal 2007, the Company opened 16 Urban Outfitters stores, 14 Anthropologie stores and 2 Free People stores.

The Company plans to open 37 to 41 new stores, including during fiscal 2008.

Sectors: Apparel, Finance, Retail

Companies: Urban Outfitters, Anthropologie