Urban Outfitters Q4 net sales drop by 6.9 percent

Urban Outfitters posted net income of 29 million dollars and 1 million dollars for the three months and year ended January 31, 2021, respectively. The company said, earnings per diluted share were 29 cents and 1 cent for the three months and year, respectively. For the fourth quarter, adjusted net income was 29 million dollars and adjusted earnings per diluted share were 30 cents. Total company net sales for the quarter decreased 6.9 percent to 1.09 billion dollars, while comparable retail segment net sales decreased 7 percent.

“As we begin our new fiscal year, we are encouraged by the positive sales results all three brands delivered in North America quarter-to-date,” said Richard A. Hayne, the company’s Chief Executive Officer.

Review of Urban Outfitters’ Q4 and full year results

By brand, fourth quarter comparable retail segment net sales increased 6 percent at Free People and decreased 6 percent at Urban Outfitters and 11 percent at the Anthropologie Group. Wholesale segment net sales decreased 7 percent.

For the year ended January 31, 2021, total company net sales decreased 13.4 percent, while comparable retail segment net sales decreased 11 percent, partially offset by strong double-digit growth in digital channel sales. Wholesale segment net sales decreased 40 percent.

For the three months ended January 31, 2021, the gross profit rate decreased by 198 basis points and the adjusted gross profit rate decreased by 314 basis points versus the prior year’s comparable period. For the year ended January 31, 2021, the gross profit rate decreased to 25 percent of net sales, from 31.1 percent of net sales versus the prior year’s comparable period.

During the year ended January 31, 2021, the Company opened a total of 20 new retail locations including: seven Urban Outfitters stores, seven Anthropologie Group stores and six Free People stores (including two FP Movement stores); and closed 10 retail locations including eight Urban Outfitters stores, one Anthropologie Group store and one Free People store. During the year ended January 31, 2021, six franchisee-owned stores were closed including four Urban Outfitters stores, one Anthropologie Group store and one Free People store.

Image:Anthropologie, Facebook