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Urban Outfitters posts 38 percent rise in Q3 profit

By Prachi Singh

24 Nov 2020

Business

Urban Outfitters, Inc. has announced net income of 77 million dollars and earnings per diluted share of 78 cents for the third quarter, while net loss for the nine months period was 27 million dollars and loss per diluted share was 28 cents. The company said in a statement that net sales for the three months decreased 1.8 percent to 970 million dollars, while comparable retail segment net sales were flat. By brand, comparable retail segment net sales increased 17 percent at Free People and 4 percent at Urban Outfitters and decreased 9 percent at the Anthropologie Group. Wholesale segment net sales decreased 24 percent.

“I am pleased to announce URBN delivered record Q3 earnings per share in spite of an incredibly difficult operating environment,” said Richard A. Hayne, the company’s Chief Executive Officer, adding, “Our 38% increase in net profits was driven by strong product assortments combined with tight control of inventory and expenses.”

During the nine months ended October 31, 2020, the company opened a total of twelve new retail locations including: six Urban Outfitters stores, three Anthropologie Group stores and three Free People stores (including one FP Movement store); and closed five retail locations including: four Urban Outfitters stores and one Free People store. During the same period four Urban Outfitters franchisee-owned stores and one Free People franchisee-owned store were closed.