Urban Outfitters Q4 profit falls but beats Street

Philadelphia – Net income fell at Urban Outfitters Inc. during the fourth quarter of fiscal 2014, but still beat Wall Street expectations.



Urban Outfitters reported net income of $80.3 million, down 9% from $88.68 million the same quarter a year earlier. Lower initial merchandise markups, increased markdowns and higher selling, general and administrative (SG&A) expenses all contributed to the decline.



Net sales met Wall Street projections by climbing 12% to $1.01 billion from $905.86 million. Same-store sales, including direct-to-consumer, rose 6% amid improved performance by the company's namesake brand and surging demand for its Free People brand.



"We are pleased to report our first billion dollar quarter, fueled by positive retail segment `comps` at all of our brands, "said Richard A. Hayne, CEO. "It is encouraging to see this sales trend continue into the first quarter."



For the full year, net income dropped 18% to $232.43 million, from $282.36 million. Net sales grew 7% to $3.32 $3.09 billion. Same-store sales increased 2%.