Urban Outfitters earnings plummet despite sales gains across most segments
The Philadelphia-based company said total net sales for the three months ended October 31 increased 3.9% over the same period last year to a record $1.18 billion.
Total retail segment net sales increased 2%, with comparable retail segment net sales increasing 4%, partially offset by a 2% negative impact of foreign currency translation.
The increase in retail comps was driven by mid-single-digit positive digital channel sales and low single-digit positive retail store sales.
By brand, comparable retail sales increased 13% at the Anthropologie Group and 8% at the Free People Group, but decreased 9% at Urban Outfitters. Wholesale sales decreased 3%, driven by a 4% decrease in Free People Group wholesale sales, partially offset by a 6% increase in Urban Outfitters wholesale sales.
Nuuly sales increased by $22.6 million, driven by a 185% increase in subscribers during the quarter, added the company.
Despite the overall sales uptick, net income for the three months fell to $37.2 million, compared to $88.9 million, while earnings per diluted share were $0.40, compared to $0.89.
"We are pleased to announce record Q3 sales fueled by strong ‘comps’ at the Anthropologie and Free People brands,” said Richard Hayne, chief executive officer.
For the nine months ended October 31, total company net sales increased 6% compared to the same period last year. Nine-month income was slashed to $128.24 million, compare to $266.66 million last year.
“As we approach the all-important Black Friday/Cyber Monday weekend, we are encouraged by sales quarter-to-date," added Hayne.
Copyright © 2023 FashionNetwork.com All rights reserved.