Urban Outfitters Shares Fall as Sales Disappoint
November 16 2015 - 7:40PM
Dow Jones News
Urban Outfitters Inc. reported sales that missed Wall Street
estimates in the third quarter, even as profit and margins
improved.
Shares, which closed Monday down 7.4%, fell 7.8% in late trading
to $20.91.
The results came after the company disclosed it had reached an
agreement to buy Philadelphia's Vetri Family restaurant group,
parent of Pizzeria Vetri.
Urban Outfitters opened its first store in 1970 near the
University of Pennsylvania campus. It has expanded into a
multinational clothing company with more than $3 billion in sales a
year. In addition to its namesake brand, Urban Outfitters is the
parent company of Free People and Anthropologie Group, which
includes the Anthropologie, BHLDN and Terrain brands.
Overall for the period ended Oct. 31, Urban Outfitters reported
a profit of $52 million, or 42 cents a share, compared with $47.1
million, or 35 cents a share, a year earlier.
Sales, less returns, rose 1.3% to $825.3 million.
Analysts surveyed by Thomson Reuters projected profit of 42
cents a share on $870.5 million in sales.
Gross margin improved to 34.9% from 34.8%.
Comparable sales, which includes sales at stores open for at
least a year and online sales, rose 1%. That included a 1% increase
at its namesake brand and 3% at Free People. Comparable sales at
Anthropologie were largely flat.
Meanwhile, wholesale net sales declined 5%, which the company
attributed to shipment delays at its new distribution facility in
Pennsylvania.
Inventory fell by $26 million, or 5%, from a year earlier, as
Urban Outfitters heads into the holiday season, a key period for
retailers. Historically, the last five months of the year account
for most of Urban Outfitters' sales.
Write to Maria Armental at maria.armental@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 16, 2015 19:25 ET (00:25 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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