Urban Outfitters reports “better-than-expected” financial results
Defying Wall Street analysts' prediction, the company reported earnings per share of 56 cents, exceeding the predicted 35 cents. What's more, its revenue reached £889 million ($1.11 billion), beating the anticipated £881 million ($1.09 billion).
The company's net income stood at £42.73 million ($52.82 million), or 56 cents per share.
While Urban Outfitters saw a decline in sales for its namesake brand compared to the previous year, the Free People and Anthropologie brands achieved double-digit sales growth.
The company reported individual brand’s net sales as follows:
- Urban Outfitters net sales were down by 13.7% year-on-year to £249.7 million ($308.7 million)
- Anthropologie sales were up by 12.8% year-on-year to £383.1 million ($473.6 million)
- Free People sales were up by 11.4% to £221.4 million ($273.7 million)
Nuuly, the subscription-based rental service for women’s clothes, contributed £41.6 million ($51.5 million) to net sales, reflecting an increase from £18.4 million ($22.8 million) the year prior.
In terms of segments, retail rose by 4%, meanwhile wholesale dipped by 11%.
Richard A. Hayne, CEO of Urban Outfitters, commented: "We are pleased to report record first quarter sales and earnings per share driven by a 5 percent increase in comparable retail segment sales, strong growth in Nuuly Rent and a significant improvement in gross margins."