Offering early insight into how it fared during the critical holiday shopping season, Urban Outfitters Inc. said Thursday that sales at stores open for at least a year fell 1 percent while overall sales at the multi-brand retailer rose 9 percent for its fourth quarter, which ended Jan. 31.
Total company net sales rose $731 million for the quarter, while total sales for the year reached $2.5 billion, a 9 percent increase over the prior year, the Philadelphia-based company reported.
Fifty-seven new stores were opened during the year - 21 Urban Outfitters locations, 15 Anthropologie stores, 20 Free People locations, and 1 BHLDN bridal store - as part of a global growth strategy that has included expansion at the company's Philadelphia Navy Yard headquarters.
Poorly selling women's apparel had dragged on financial performance for the better part of a year and preceded the sudden departure from the company last month of chief executive Glen T. Senk.
Fashion misses, particularly at Anthropologie, had been a topic of concern for investors for months and had contributed to the steady decline in the publicly traded company's stock price over the last year.
The company said Thursday that it had successfully cleared away much unsold merchandise through markdowns during the quarter, making way for spring fashions that officials have said they hope will catch on better with female shoppers.
"While each brand reported record sales for the fourth quarter, we are most pleased with the progress the teams made on reducing overall inventory levels," said board chairman and company founder Richard A. Hayne, who replaced Senk as CEO and is the company's single largest shareholder.
Direct-to-consumer sales, which include online purchases, rose nearly 15 percent compared with the same quarter a year earlier. Hayne dubbed that category a "highlight, with each brand experiencing strong growth during the quarter."
On Feb. 2, just weeks after the Jan. 10 departure of Senk rattled investors, Hayne announced the return of company veteran Tedford Marlow to the company, naming him CEO of Urban Outfitters Group, which oversees the Urban Outfitters brand globally.
The corporation said it would report earnings March 12.
Contact staff writer Maria Panaritis at 215-854-2431 or mpanaritis@phillynews.com or @panaritism on Twitter.
