Urban Outfitters posts record sales as profits slip
Urban Outfitters on Tuesday confirmed its record performances for the fourth quarter and full year 2016. The company first reported its record numbers in Feburary.
Total fourth quarter net sales increased 2% to $1.03 billion, and comparable retail segment net sales, including direct-to-consumer, were flat due to negative retail store comparable net sales.
Urban Outfitters retail segment net sales increased 2.0% and 1.2% at Free People, but Anthropologie net sales fell 2.9%.
Total company net sales increased 3% to $3.5 billion, with comparable retail segment net sales increasing 1% and wholesale segment sales increasing 11%.
“We are pleased to announce record fourth quarter and full year sales driven mostly by the continued success in the direct-to-consumer channel,” said Richard A. Hayne, Chief Executive Officer. “As we enter a new year, we will continue to shift our efforts and spend into our fastest growing channel.”
Despite the record numbers, fourth quarter gross profit decreased by 142 basis points and full year gross profit increased 21 basis points. The fourth quarter decline is attributed to lower initial markup and higher markdowns at Anthropologie and Urban Outfitters. In addition, total inventory increased by $8 million, or 3%.
In addition, net income in the fourth quarter decreased to $64.3 million, or $0.55 per diluted share, from $72.9 million, or $0.61 per diluted share.
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