Urban Outfitters Q3 net sales rise 5 percent

REPORT_ Urban Outfitters announced third quarter net income of 47 million dollars and 152 million dollars for the three and nine months ended October 31, 2014, respectively. Earnings per diluted share were 0.35 dollars and 1.09 dollars for the three and nine months ended October 31, 2014, respectively. Total Company net sales for the third quarter of fiscal 2015 increased to a record 814 million dollars or 5 percent over the same quarter last year.

Comparable retail segment net sales, which include comparable direct-to-consumer channel, decreased 1 percent. Comparable retail segment net sales increased 15 percent at Free People and 2 percent at the Anthropologie Group and decreased 7 percent at Urban Outfitters. Wholesale segment net sales rose 26 percent.

“While we are pleased with delivering record third quarter sales fueled by strong performances at our Anthropologie and Free People brands, I am disappointed by the results at the Urban Outfitters brand,” said Richard A. Hayne, Chief Executive Officer, adding, “There is much work to be done to improve the merchandise margins and store performance at the Urban brand, but I see positive signs as shown by strong results at the brand's direct-to-consumer channel.”

For the three and nine months ended October 31, 2014, the gross profit rate declined by 295 basis points and 233 basis points versus the prior year's comparable periods, respectively. During the nine months ended October 31, 2014, the company opened a total of 29 new stores including 12 Free People stores, 10 Anthropologie Group stores and 7 Urban Outfitters stores; and closed 1 Urban Outfitters store.