Urban Outfitters reports jump in sales, revenue

Posted: February 08, 2013

Philadelphia-based Urban Outfitters said this morning that fiscal fourth-quarter revenue rose 15 percent to $856.8 million, beating analysts' estimates.

Analysts surveyed by FactSet expected revenue of $836.6 million.

CEO Richard Hayne said in a statement that the quarterly performance was helped by new stores, better products and more effective marketing across its brands.

The Philadelphia company, whose brands also include Anthropologie, BHLDN, Free People, and Terrain, said revenue from stores open at least a year was flat. Removing direct-to-consumer returns at its store, the figure would have increased by a low single-digit percentage rate.

This metric is an indicator of a retailer's health because it excludes results from stores recently opened or closed.

Comparable retail segment sales, which includes direct-to-consumer, climbed 11 percent. This was led by a 37 percent increase at Free People. The Urban Outfitters brand reported an 11 percent rise, while Anthropologie climbed 7 percent.

Direct-to-consumer sales rose 44 percent in the quarter, while wholesale sales rose 22 percent.

Full-year revenue climbed 12 percent to $2.79 billion from $2.47 billion.

Revenue at stores open at least a year dipped 1 percent. Excluding direct-to-consumer returns at its store, the metric would have climbed by a low single-digit percentage rate.

Comparable retail segment sales increased 7 percent

The company said comparable retail segment net sales increased 37 percent at Free People, 11 percent at Urban Outfitters and 7 percent at Anthropologie.

And direct-to-consumer net sales surged by 44 percent for the quarter and wholesale segment net sales rose 22 percent.

For the year ended January 31, 2013, total company net sales increased to $2.8 billion - or 13 percent over the prior year.

The company opened 49 new stores the past year, including 18 Urban Outfitters, 15 Free People, 14 Anthropologie, 1 BHLDN store and 1 Terrain garden center. It closed 2 Anthropologie stores.

Urban Outfitters will release fourth quarter and fiscal year 2013 earnings results on March 11, 2013.

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