Urban Outfitters 4Q sales rise 9% to USD731 million

Urban Outfitters, Inc. Thursday announced record net sales for the quarter and year ended January 31, 2012. For the fourth quarter of fiscal 2012, total company net sales increased 9% over the same quarter last year to $731 million.

"While each brand reported record sales for the fourth quarter, we are most pleased with the progress the teams made on reducing overall inventory levels.  Promotional activity was significantly higher than planned but ending inventories were clean, and on a comparable store basis, lower than the prior year," said Richard Hayne, Chief Executive Officer.  "The direct-to-consumer channel remains a highlight with each brand experiencing strong growth during the quarter.  We remain especially excited about the opportunities surrounding this channel."

Urban Outfitters said it reduced inventory levels at the end of the fourth quarter, softening the blow of a sales miss for the period and allaying concerns that it was struggling to get rid of piled-up merchandise, reported Reuters. The stock rose as much as 3 percent, before shedding some gains to trade up nearly 1 percent at $27.35 on Thursday afternoon on the Nasdaq.

Sales in the fourth quarter rose 9 percent to $731 million, but came in below analysts' expectations of $741.9 million, according to Thomson Reuters I/B/E/S.

Comparable retail segment net sales, which include the direct-to-consumer channels, increased 2% for the quarter, while comparable store net sales decreased 1% for the quarter. Comparable retail segment net sales at Urban Outfitters, Free People and Anthropologie increased 3%, 9% and 1%, respectively. Direct-to-consumer comparable net sales increased 14% and wholesale segment net sales rose 3% for the quarter.

Comparable retail segment net sales were flat while comparable store net sales decreased 4%. Direct-to-consumer comparable net sales rose 14% for the year and wholesale segment net sales increased 11%.