Urban Outfitters profit tops estimates
08 March 2010 09:06
Urban Outfitters has reported quarterly profit above estimates for the fourth time in a row and announced the launch of a new brand next February. The new line will cater to brides and wedding shoppers and will be initially offered online and later in stores.
The retailer achieved record earnings of $78 million and $220 million in the fourth quarter and year to January 31st 2010 respectively.
Total company sales for the quarter climbed to a record $589 million, up by 16% on the comparable quarter last year, with comparable retail segment sales (including direct-to-consumer channels) up by 9%.
At Anthropologie, comparable store sales rose by 10%, 11% at Free People and were flat at Urban Outfitters, with combined comparable store sales up by 4%. Total company net sales for the year increased by 6% to a record $1.9 billion.
"We are delighted to announce a series of record-breaking results for the quarter and year, including quarterly earnings growth of 92% and a quarterly operating profit of 20%," said Glen T. Senk, chief executive officer.
"The sales and profit trend improved in each quarter throughout 2009, and our current February 'comp' sales performance exceeded our fourth quarter 'comp'. Our team continued to exhibit exceptional discipline in managing expenses while simultaneously making strategic investments in design, the supply chain, technology, international, direct-to-consumer and our newest businesses, Terrain and Leifsdottir," he added.
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