Urban Outfitters misses on Q3 profit, same-store sales

Philadelphia –- Urban Outfitters missed Wall Street expectations for the third quarter of fiscal 2015 with a larger-than-predicted 33% decline in net income to $47.14 million from $70.26 million in the same period a year earlier. In addition, same-store sales fell 1% compared to expectations of flat results.



In one bright spot, net sales rose more than expected to $814.47 million, up 5% from $774.05 million. Net sales actually dropped at the Urban Outfitters banner, but rose at the Free People and Anthropologie banners. Increased selling, general and administrative (SG&A) expenses, resulting from higher marketing and technology expenses which drove higher direct-to-consumer traffic.



"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, CEO. "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.”